Reddit joins a number of technological firms that have been reducing employment across corporate America.
Due to the success of WallStreetBets and other forums on its platform, which have evolved into a place for retail investors to speculate on stocks, Reddit, which was split out from magazine behemoth Conde Nast in 2011, has recently seen a rise in popularity.
Reddit’s action was initially reported by The Wall Street Journal on Tuesday, according to an email issued to staff members by CEO Steve Huffman.
According to the WSJ, Huffman stated that the company would also scale back its hiring for the remainder of the year from an initial plan of 300 personnel to perhaps 100.
After the company’s message boards became the preferred location for day traders amid a meme stock frenzy, Reddit had secretly registered for an initial public offering with the U.S. securities commission in December 2021.
As the tech sector prepares for a recession, companies like Meta have been cutting staff after aggressively hiring during the pandemic.