Reddit announces 5% workforce reduction

Reddit has announced that it will be reducing its workforce by about 5%, leading to the termination of around 90 employees. This decision places Reddit among the growing number of technology companies in corporate America that have been downsizing their staff.

Several tech companies, including Meta Platforms (formerly known as Facebook), have been implementing job cuts as they prepare for a potential economic downturn after a period of aggressive hiring during the pandemic.

Meta recently underwent a series of layoffs across various departments, eliminating a total of 10,000 positions. The company's downsizing initiative was initially announced in March and concluded with its most recent round of job cuts last month.

Reddit, which was spun off from Conde Nast in 2011, experienced a surge in popularity due to the rise of Wall Street Bets and other forums on its platform that attracted retail investors interested in speculative stock trading.

According to an email sent to employees by Chief Executive Steve Huffman, as reported by The Wall Street Journal, Reddit will also scale back its hiring plans for the remainder of the year. The company initially intended to recruit 300 new employees but will now reduce that number to around 100.

In late 2021, Reddit confidentially filed for an initial public offering (IPO) with the U.S. securities regulator. The company's message boards gained significant attention during a meme stock frenzy, attracting day traders and investors alike.