Reddit to lay off around 5 per cent of its workforce, 90 employees to be affected

Popular social media website Reddit is the latest tech company to announce layoffs. The company, as per a Reuters report originally attributed to The Wall Street Journal, will be showing the exit door to about 5 per cent of its workforce. As a result, around 90 employees will lose their jobs. Presently, Reddit has around 2,000 employees and used by people across the world to initiate discussions, circulate news, talk about shared common interests, and so on.

Reddit announces layoffs

The news of the layoffs was shared with the employees by Reddit’s Chief Executive Steve Huffman. As per reports, the top executive had told employees in the memo that he, along with the team, ‘reviewed and adjusted the company’s plan through the end of 2024’.

“We’ve had a solid first half of the year and this restructuring will position us to carry that momentum into the second half and beyond,” he said as per a Fortune report originally attributed to Bloomberg.

He also added that the company is prioritising to get to ‘breakeven next year’ and funding data and API tools for the platform’s moderators. Moreover, Reddit is also mulling over the idea of increasing prices for third-party app developers, as per reports.

That’s not all, Reddit will also be reducing hiring for the remaining year. Earlier, the company had planned to hire around 300 new employees. But now, only 100 people will be hired.

Reddit had confidentially filed for an initial public offering with the U.S. securities regulator in December 2021.

Layoffs in tech

The tech industry, in the last couple of months, has gone through a major upheavel and many tech giants have fired people left, right and center. From Google to Microsoft, a lot of major tech firms handed the pink slip to employees at a mass level. Google CEO Sundar Pichai announced the company’s decision of firing 12,000 employees in January this year. Microsoft, on the other hand, laid off 10,000 people in January and another 500 in March.

Tech giant Meta has fired around 21,000 employees till now. The first 11,000 employees were shown the exit door in November last year and another round of layoffs affecting 10,000 employees was announced in March.

At the beginning of this year, Mark Zuckerberg had declared 2023 as the ‘year of efficiency’ and had said that the company will be ‘removing some layers of management to boost efficiency’ during an internal meeting.

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