Reddit cuts 5% jobs amid surge in the tech sector layoffs

Social news aggregator and the online discussion platform Reddit has announced the layoff of 5 per cent of its work force, which accounts for almost 90 employees out of the total 2,000 employees working with the organisation, as per media reports. The company has further added that it plans for a complete restructuring by the year 2024 and the decision has been the result of the same.

The decision to layoff employees was conveyed to them by its CEO Steve Huffman and the move by the company is aimed at reducing expenses. Further, it also plans to reduce hiring in the coming years, which was about to hire more than 300 people at the start of the year, which at present has now been reduced to just 100.

“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 said in the email as per reports.

Reddit is considered among the best go-to destinations for tech enthusiasts for sharing ideas and initiating discussions. It has also been in the news for breaking major insider information in the tech and the gaming industry. 

With Reddit announcing layoffs, the tech industry as reported by Republic World last week is continuously striving to sustain. The hiring pace too is decreasing drastically. Other major companies which have recently included layoffs include Spotify and Disney from the media and entertainment industry.

The Challenger report 2023 has recently revealed that the tech-industry will witness the highest layoffs, which will be followed by the retail, entertainment, finance and the healthcare sector. Last month, employers only hired 7,884 people which has been the lowest tally since November 2020. The total proposed hiring this year till May is only 101,833, which is almost 80 per cent less compared to the same period last year.

According to Layoffs.fyi data, the job cuts in the tech industry stand at 2,02,399 employees laid off from 749 tech companies in 2023, whereas almost 1,64,709 have been laid off from more than 1,057 tech companies in 2022. Apart from Reddit, companies from the consumer, security and healthcare industries announced layoffs on Tuesday (June 6); these include Linktree, Dragos and Bunni.