Reddit Layoffs about 5% of its Workforce

The well-known online forum Reddit said on Tuesday that it will undertake layoffs that will affect about 5% of its personnel.

Reddit has also revealed layoffs during this time of massive layoffs. The well-known online forum for community discussions is laying off about 5% of its personnel to coincide with the impending global economic slump that the international economy is now preparing for.

As a result of its decision, Reddit has joined Microsoft, Google, Meta, and other IT companies that have laid off staff in response to looming financial troubles.

According to the WSJ story, Huffman stated that the company would also scale back its hiring for the remainder of the year from an initial plan of 300 personnel to perhaps 100.

“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,” Huffman said in the email.

Reddit, which was founded in 2005, is well-known for its specialized discussion boards called subreddits as well as its “ask me anything” online town halls with famous people, decision-makers, and subject-matter experts. 

With this strategy, the social media company hopes to achieve financial parity in 2019. In 2011, Reddit was separated from Conde Nast, a publisher of magazines. More than 57 million active unique users every day interact with more than 100,000 active communities on the platform, claims the business.

Reddit submitted a confidential application for an initial public offering to the American securities regulator in December 2021. This action was taken amid a meme stock frenzy when day traders intending to engage in speculative trading activity made Reddit’s message boards their preferred destination.

Reddit’s stock was worth $16.6 million on April 28 according to Fidelity Blue Chip Growth Fund’s monthly statement. According to their annual and semi-annual filings, Fidelity acquired Reddit shares for $28.2 million in August of 2021. This is a total decline of 41.1 percent, according to a TechCrunch story.

In an update on May 2, 2023, the company said: “Every day, over 57 million daily active unique visitors engage with more than 100,000 active communities on Reddit, and to date, have contributed more than 13 billion pieces of content (posts and comments) worldwide.”

As businesses negotiate difficult economic conditions, similar workforce reductions have been seen in a number of industries, including technology, social media, and other areas, like Reddit.