Reddit, the popular online community platform, is cutting about 5% of its workforce due to the current economic downturn. Nearly 90 employees will be affected by these job cuts. The company is also adjusting its hiring plans as part of a restructuring effort to ensure financial stability by 2024.
ALSO:
- Yahoo Lay Off Over 20% of Workforce, Massive Shakeup!
- META Reportedly Will Lay Off Over 11, 000 People
- Spotify’s Latest Tech Layoffs
The layoffs will impact different departments across Reddit, and CEO Steve Huffman personally communicated the news to employees. In an email, Huffman expressed confidence in the company’s performance during the first half of the year and emphasized that the restructuring will help them maintain their progress in the future.
Reddit is scaling back its hiring plans for the rest of 2023, aiming to bring around 100 new employees instead of the initially planned 300. This decision comes after Fidelity, a significant investor, decreased the estimated value of its equity stake in the company. In April, the value of Fidelity’s stake in Reddit was $16.6 million, indicating a 41.1% decrease from its acquisition of the shares for $28.2 million in August 2021.
Despite these developments, Reddit remains a popular platform, with over 57 million daily active unique users participating in more than 100,000 active communities. The platform has seen significant user engagement, with over 13 billion posts and comments contributed globally to date. The layoffs reflect a broader trend of workforce reductions happening across different sectors due to challenging economic conditions.
