Reddit Streamlines Operations, Laying Off 5 percent of Employees

In a move to reduce expenses and attain financial stability, the social discussion platform Reddit has recently unveiled its plans to restructure key aspects of its business. Reports indicate that the company will be laying off a minimum of 90 employees, affecting approximately 5% of its workforce. Concurrently, Reddit will scale back fresh recruitment, intending to hire only around 100 additional employees instead of the originally projected 300. Despite these adjustments, Reddit's CEO, Steve Huffman, remains hopeful, affirming that the restructuring will position the company to maintain its positive momentum in the future.

This decision by Reddit aligns with its objective of reaching a break-even point next year and underscores the challenges faced by social media firms in today's competitive landscape. By following in the footsteps of other major platforms like Twitter and Meta (formerly Facebook) in announcing layoffs, Reddit is making strategic modifications to remain viable amidst an increasingly saturated market. Nevertheless, despite the reduction in workforce, Reddit continues to be an immensely popular social media platform, boasting more than 57 million daily active users actively participating in over 100,000 communities.