US-based social media platform Reddit is reducing its workforce by 5%, joining other technology companies in cutting jobs, reported Bloomberg.
According to an internal memo by Reddit CEO Steve Huffman, the company is also reducing its hiring plans as it refocuses on future growth.
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Reddit’s decision will cut in the region of 90 full-time jobs, the publication said, citing the memo.
The company currently employs around 2,000 people on a full-time basis.
Reddit will also scale back its hiring goals from 300 new positions to just 100.
“The team and I reviewed and adjusted our plan through the end of 2024,” Huffman’s memo read.
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By GlobalData“We have had a solid first half of the year and this restructuring will position us to carry that momentum into the second half and beyond.”
Reddit “getting to breakeven next year” and supporting data and API tools for the platform moderators are top goals, according to Huffman.
The business intends to raise prices for independent app developers because it “needs to be paid fairly” to support them.
The Wall Street Journal initially reported the layoffs.
Since last year, the technology industry has reduced staff after hiring excessively during the pandemic.
Reddit, which was one of the few remaining companies that had not yet announced any significant job cuts, filed for an initial public offering with the US securities commission in December 2021.
Earlier this week, Spotify announced plans to reduce its headcount by 200 employees or 2% of its workforce.
