Reddit to lay off about 5 per cent of its workforce: Report

Reddit, the popular online discussion platform, announced on Tuesday that it will be implementing layoffs affecting approximately 5 per cent of its workforce. According to Reuters, this translates to around 90 employees. This move places Reddit among the growing number of technology companies in corporate America that have been downsizing their staff in response to anticipated economic challenges.

In the wake of the pandemic, several tech giants, including Meta Platforms (formerly known as Facebook), have been restructuring their organisations, following periods of aggressive hiring. These companies are taking proactive measures to navigate the potential impacts of an economic downturn on their operations.

Meta, the parent company of Facebook, recently undertook a series of job cuts across various business and operational units. This was the final phase of a three-part layoff initiative initially announced in March, ultimately resulting in the elimination of 10,000 positions.

For Reddit, which emerged as an independent entity after separating from magazine conglomerate Conde Nast in 2011, the platform experienced a significant surge in popularity thanks to the rise of WallStreetBets and other forums. These communities have become hotspots for retail investors seeking to engage in speculative trading activities.

The Wall Street Journal was the first to report on Reddit's decision to downsize. In an email sent to employees, Chief Executive Steve Huffman outlined the company's intentions. Additionally, Huffman mentioned that Reddit would scale back its hiring efforts for the remainder of the year, reducing the target from an initial plan of 300 new hires to approximately 100, according to the WSJ report.

In December 2021, Reddit confidentially filed for an initial public offering with the U.S. securities regulator. This move came in the midst of a meme stock frenzy, during which Reddit's message boards became the go-to destination for day traders looking to participate in speculative trading activities.

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