Reddit, the popular social media website, has announced its plans to lay off approximately 5 per cent of its workforce, resulting in around 90 employees losing their jobs. The news of the layoffs was shared with the employees by Steve Huffman, chief executive, Reddit, in a memo. According to reports, Huffman stated that the company had reviewed and adjusted its plan through the end of 2024.
Huffman expressed confidence in the company’s performance, mentioning a solid first half of the year and the restructuring as a way to maintain momentum going forward. He emphasised the goal of reaching breakeven next year and allocating resources to support Reddit’s moderators with funding data and API tools. Additionally, reports suggest that Reddit is considering raising prices for third-party app developers.
As part of the restructuring, Reddit will also reduce its hiring plans for the remaining year. Originally intending to hire around 300 new employees, the company will now only hire approximately 100 individuals.
The layoffs at Reddit reflect a broader trend in the tech industry, with several major tech companies implementing workforce reductions. Google announced the layoff of 12,000 employees earlier this year, while Microsoft laid off 10,000 people in January and an additional 500 in March. Meta (formerly Facebook) has let go of approximately 21,000 employees, with two rounds of layoffs affecting 11,000 and 10,000 employees, respectively.
The tech industry’s recent layoffs have been attributed to various factors, including efficiency improvements and adjustments to business strategies. Reddit, which confidentially filed for an initial public offering in December 2021, joins the ranks of companies making organisational changes to adapt to evolving market conditions and priorities.