Company to lay off 90 full-time employees; reduce number of hires to 100
US-based online forum operator Reddit is cutting its workforce by approximately 5% and reducing its hiring plans, according to reports.
The company is planning to lay off around 90 full-time employees, while it will reduce the number of hiring to 100 new positions, down from the previous figure of 300, according to a memo sent by CEO Steve Huffman to employees late Tuesday.
Huffman said the move aims to carry the company into the second half of this year, and the new plan was made with a focus through the end of 2024.
The American social news aggregation, content rating,and discussion website has approximately 2,000 full-time employees.
Reddit filed for an initial public offering (IPO) in December 2021 when a meme frenzy had taken over the US stock market and cryptocurrencies.
The IPO, however, stalled due to heightened risks of a recession and the turmoil in the US banking sector earlier this year.
Dozens of companies, especially in the tech sector, have been cutting jobs as many industries are struggling with lower income, falling advertisement revenue and fears of a recession.
In recent months, Disney, 3M, Amazon, Yahoo, Affirm, Zoom, Dell, IBM, Microsoft, Salesforce, PayPal and Google’s parent company, Alphabet, have laid off workers by the thousands.