The Reddit corporation has recently made a significant announcement, however, regrettably, it will be implementing a 5% reduction in its workforce, resulting in the termination of approximately 90 employees. This decision places Reddit among the increasing number of technology companies in corporate America that are downsizing their staff.
Numerous companies, such as Meta Platforms, have begun to carry out layoffs in anticipation of a possible economic decline following a phase of extensive recruitment amid the COVID-19 pandemic.
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Meta recently underwent a round of workforce reductions in various divisions, resulting in the elimination of approximately 10,000 positions due to the implementation of artificial intelligence. The organization unveiled its downsizing strategy in March and concluded it last month with a series of job cuts.
The surge in popularity of Wall Street Bets and other Reddit forums has drawn the attention of retail investors seeking speculative stock trading opportunities. This surge occurred in 2011 and contributed to the site’s growing popularity. Furthermore, in regards to layoff emails, CEO Steve Huffman sent an email to employees announcing that Reddit will be reducing its hiring plans for the rest of the year. Consequently, the company plans to hire approximately 100 new employees instead of the initially planned 300.
Reddit submitted a confidential registration to the U.S. Securities and Exchange Commission in late 2021 as part of its IPO. The company’s message boards attracted significant interest from day traders and investors during the meme stock frenzy.
