Reddit is implementing a workforce reduction of approximately 5% and making adjustments to its hiring plans, in an effort to realign its focus towards future expansion.
The operator of the popular online forum is set to eliminate approximately 90 full-time positions, as stated in a memo from CEO Steve Huffman, reported by Bloomberg News. With around 2,000 full-time employees, the company aims to streamline its workforce.
Additionally, Reddit will scale back its hiring plans from 300 to 100 new roles as part of its revised strategy.
“The team and I reviewed and adjusted our plan through the end of 2024. 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 wrote in the memo.
According to Huffman, Reddit's key priorities involve achieving breakeven by next year and allocating funds for data and API tools to assist the platform's moderators. The company intends to raise prices for third-party app developers, emphasising the need for fair compensation to sustain their support.
Earlier reports by The Wall Street Journal covered the job cuts at Reddit. In late 2021, Reddit, the social media platform that played a significant role in the stock meme frenzy, filed for an initial public offering (IPO) in a confidential manner. However, IPO plans have been put on hold due to the unsettled banking landscape and concerns about potential economic recession risks.
Since last year, the tech industry has been reducing its workforce after experiencing an over-hiring trend during the pandemic. According to Challenger, Gray & Christmas, technology companies have collectively announced approximately 136,800 job cuts from January to May, surpassing the annual total for any year since 2001. Amidst this trend, Reddit stood out as one of the few companies that had not yet announced significant staff reductions.