Reddit to lay off 5% of its workforce

Reddit says it is laying off about 5% of its workforce, or 90 employees, joining a list of technology companies that have been cutting jobs across corporate America.

Tech companies including Meta Platforms (META.O) have been slashing jobs after aggressively hiring during the pandemic, as the industry braces for an economic downturn.

Meta, the owner of Facebook, slashed jobs across its business and operations units last month, as it carried out its last batch of a three-part layoff round, first announced in March to eliminate 10,000 roles.

Reddit, which was spun off from magazine conglomerate Conde Nast in 2011, saw a recent surge in appeal due to the popularity of WallStreetBets and other forums on its platform that have become a venue for retail investors to speculate on stocks.

Reddit’s move was first reported on Tuesday, citing an email sent to employees from Chief Executive Steve Huffman.

Huffman said the company would also reduce its hiring for the rest of the year to about 100 people from an early plan of 300.

In December 2021, Reddit had confidentially filed for an initial public offering with the U.S. securities regulator after the company’s message boards became the go-to destination for day traders during a meme stock frenzy.

Reuters/Hauwa Abu