Reddit is laying off around 90 employees and slowing hiring as part of a restructuring.
CEO Steve Huffman said the aim is to prioritize funding for projects and work towards achieving profitability by next year.
These job cuts account for approximately five percent of its total workforce, currently around 2,000 employees.
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Huffman said: “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.”
Reddit will reduce its hiring goals for the remainder of the year to around 100 hires, down from the initial plan of 300.
The social media platform, founded in 2005, is known for its subreddit message boards covering diverse topics.
It also has popular “ask me anything” sessions featuring celebrities, politicians, and experts.
After being acquired by Condé Nast in 2006, Reddit became an independent entity under the ownership of Condé Nast’s parent company, Advance Publications, in 2011.
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Steve Huffman assumed the role of CEO in 2015.
Although Reddit filed to go public at the end of 2021, the company has not yet proceeded with the initial public offering.
Its primary revenue stream is derived from advertising.
But last month, it planned to charge certain third-party developers, including artificial intelligence companies, for access to its application programming interface (API) as part of an update to its terms of service.
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The downsizing trend has affected numerous technology companies this year and the end of the previous year.
It includes major players like Amazon, Meta, Alphabet, and Microsoft.
Many of these companies cited inflation and rising interest rates as contributing to workforce reductions, with some acknowledging overhiring in recent years.
Beyond the tech sector, companies across various industries, such as McDonald’s, Walt Disney, Accenture, McKinsey, and Hasbro, have also announced layoffs.
