- tech360.tv
Reddit Joins The Tech Job Cut Trend, Announcing Layoffs
Updated: Jan 5
Amidst an anticipated economic downturn, Reddit lays off 90 employees, following in the footsteps of other technology giants.
Reddit, the popular online platform, revealed its plans to reduce its workforce by approximately 5%, resulting in the loss of 90 jobs.
This move aligns Reddit with a wave of technology companies across the U.S. that have been implementing job cuts to navigate the looming economic uncertainty.
The recent trend of downsizing is not exclusive to Reddit, as even Meta Platforms (formerly known as Facebook) has been actively slashing positions. Meta executed the final phase of its three-part layoff round in the previous month, targeting a total reduction of 10,000 roles. The pandemic-induced hiring spree that several tech firms engaged in is now being countered by necessary cutbacks.
Initially separated from Conde Nast in 2011, Reddit's recent surge in popularity can be attributed to the widespread interest in its WallStreetBets community and other forums. These spaces have served as hubs for retail investors, fostering discussions and speculation about stocks.
The Wall Street Journal was the first to report on Reddit's reduction in force, citing an internal email circulated by CEO Steve Huffman. Huffman informed employees of the layoffs and also announced a significant reduction in hiring plans. Instead of the initially proposed 300 new hires for the year, Reddit will now limit its recruitment efforts to approximately 100 positions.
In December 2021, Reddit discreetly filed for an initial public offering (IPO) with the U.S. securities regulator. The company's message boards gained immense popularity during a meme stock frenzy, making them a preferred destination for day traders.
Reddit is cutting around 5% of its workforce, resulting in 90 job losses.
Tech companies like Meta Platforms have been downsizing after aggressive pandemic-era hiring.
Reddit's recent surge in appeal is attributed to communities like WallStreetBets.
CEO Steve Huffman confirmed the layoffs and announced reduced hiring plans.
Reddit filed for an IPO in December 2021 after gaining prominence during the meme stock frenzy.