Reddit, a well-known social media platform, is the newest tech business to announce layoffs. The corporation will be displaying the exit door to around 5% of its workers, according to a Reuters report that was originally credited to The Wall Street Journal. Around 90 individuals will lose their jobs as a result. Currently, Reddit employs over 2,000 people and is utilized by users all over the world to start discussions, disseminate news, debate common interests, and other things.
Chief Executive Officer of Reddit Steve Huffman informed the staff of the layoffs. According to reports, the senior executive informed staff in a memo that he and the team had “reviewed and adjusted the company’s plan through the end of 2024.” According to a Fortune article originally cited to Bloomberg, he remarked, “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.”
Getting to “breakeven next year” and providing data and API tools for the platform’s moderators are also top priorities for the business, he continued. Additionally, according to sources, Reddit is considering raising fees for independent app developers. Reddit will also cut back on hiring for the remainder of the year. The business originally intended to bring on 300 new staff. However, only 100 workers will now be employed. In December 2021, Reddit filed a private application with the American securities commission for an IPO.
In the past several months, the tech sector has experienced a significant upheaval, and numerous computer titans have been firing employees left, right, and center. Many large tech companies, including Google and Microsoft, collectively gave staff the pink slip. In January of this year, Google CEO Sundar Pichai made the decision to let go of 12,000 employees. On the other side, Microsoft fired 10,000 staff members in January and another 500 in March.
Up to this point, the tech giant Meta has let go of about 21,000 employees. In November of last year, the first 11,000 employees were shown the exit door, and in March, it was reported that another round of layoffs would affect 10,000 workers. Earlier this year, Mark Zuckerberg announced 2023 to be the “year of efficiency” and stated during an internal meeting that the business will be “removing some layers of management to boost efficiency.”