Reddit Lays Off 5 Percent of Its Workforce, Will Reduce Planned Hiring for 2023

Tech companies have been slashing jobs after aggressively hiring during the pandemic, as the industry braces for an economic downturn.

By Reuters | Updated: 7 June 2023 10:30 IST

Reddit Lays Off 5 Percent of Its Workforce, Will Reduce Planned Hiring for 2023

Photo Credit: Reuters

Reddit CEO Steve Huffman sent an email to employees informing them about layoffs

Highlights

Reddit layoffs will affect 90 employees
Company planned to hire 300 staff for the rest of the year
Reddit will now hire 100 people in 2023

Reddit said on Tuesday it is laying off about 5 percent of its workforce, or 90 employees, joining a list of technology companies that have been cutting jobs across corporate America.

Tech companies including Meta Platforms have been slashing jobs after aggressively hiring during the pandemic, as the industry braces for an economic downturn.

Meta, the owner of Facebook, slashed jobs across its business and operations units last month, as it carried out its last batch of a three-part layoff round, first announced in March to eliminate 10,000 roles.

Samsung Wins Patent for a Tri-Fold Smartphone With Specialised Barrier Layer for Improved Durability

Reddit, which was spun off from magazine conglomerate Conde Nast in 2011, saw a recent surge in appeal due to the popularity of WallStreetBets and other forums on its platform that have become a venue for retail investors to speculate on stocks.

The Wall Street Journal first reported Reddit's move on Tuesday, citing an email sent to employees from Chief Executive Steve Huffman.

Huffman said the company would also reduce its hiring for the rest of the year to about 100 people from an early plan of 300, according to the WSJ report.

Reddit Now Allows Anyone to Comment in GIFs: All the Details

In December 2021, Reddit had confidentially filed for an initial public offering with the US securities regulator after the company's message boards became the go-to destination for day traders during a meme stock frenzy.

The company was looking at a valuation of more than $15 billion (roughly Rs. 1,14,380 crore), Reuters had reported in September 2021.

Earlier that year, the company was valued at $10 billion (roughly Rs. 76,260 crore) in a private fundraising round.

Reddit was also reportedly tapping Wall Street banks Morgan Stanley and Goldman Sachs Group for its initial public offering.

Reddit, which was founded in 2005 by Steve Huffman and Alexis Ohanian, has more than 50 million daily active users and over 100,000 communities.

The Motorola Edge 40 recently made its debut in the country as the successor to the Edge 30 that was launched last year. Should you buy this phone instead of the Nothing Phone 1 or the Realme Pro+? We discuss this and more on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.