Reddit is one of the most popular social media platforms on the web, and it has been for several years. Right now, the company is going through a restructuring – by that, we mean that it’s laying off employees. According to a report from The Wall Street Journal (via Engadget), Reddit is laying off about 5% of its workforce.
The current global economy is on the decline, and it’s affecting several companies that we rely on. Companies such as Meta, Google, Microsoft, T-Mobile, and many more are cutting employees to help reduce costs. In fact, hearing the news that a major tech company is letting loose some percentage of its employees is a common thing nowadays.
Reddit will lay off about 5% of its Workforce
As popular as Reddit is, it’s not immune to the current economic climate. According to the report, Reddit company chief Steve Huffman sent out an email to its staff saying that it will be laying off about 90 employees. That’s about 5% of the 2,000 employees that the company has. Unfortunately, we don’t know if these employees will be getting any sort of severance packages or offers to relocate to other positions within the company.
Along with cutting these employees, Reddit is also dialing back its hiring efforts. The company originally announced that it was going to add an additional 300 employees to the company. Well, that has been reduced to 100.
As you can tell, this is to help make the company more profitable. Reddit reported that it had a strong first half of the year, and it’s looking to finish strong. However, this means that there will have to be some tough decisions being made. Not too long ago, Reddit started charging people to use its API.
Notably, the owner of Apollo, said that using Reddit’s API will cost him about $20 million a year. While these prices are developers to the specific platform, $20 million is still a lot. Unfortunately, the fees are causing other Reddit apps to shut down because they cannot pay for the API. Only time will tell how that goes.