Home News Reddit is reportedly cutting 5 percent of its workforce

Reddit is reportedly cutting 5 percent of its workforce

by admin
Reddit Workforce Reduction

Reddit is undergoing a significant transformation. The Wall Street Journal has sighted an email from CEO Steve Huffman indicating that Reddit plans to terminate approximately 90 of its employees, which equates to around 5% of the current workforce of 2,000.

Furthermore, Reddit has adjusted its hiring strategy this year, reducing the number of new employees from its previously planned 300 to just 100. It appears that the popular online platform is focusing on reaching its primary objectives, one of which is to achieve financial balance by next year. In the email, Huffman reportedly stated that Reddit experienced a “solid first half of the year,” and he believes this organizational change will propel that success “into the second half and beyond.”

Reddit’s workforce reduction is just one in a series of steps towards increasing revenues. In April, the company stated it would begin charging developers for API access. This decision was made in the midst of the surge in generative AI technology, which typically utilizes data obtained from the internet via APIs. Reddit expressed that, as a platform hosting one of the largest compilations of human dialogues online for the past 18 years, they have a duty to responsibly manage this content.

While Reddit’s intention may have been to generate income from larger corporations, the move has also impacted individual developers. For instance, Christian Selig, the sole developer of Apollo for Reddit, claimed it would require $20 million annually to maintain his app as it is. Other third-party apps, such as Narwhal and Reddit is Fun, have preemptively alerted users that they cannot afford Reddit’s API costs and may need to discontinue their services. As a protest, dozens of subreddit communities covering a wide range of topics plan to go offline starting from June 12th. While some plan to stay offline for 48 hours, others plan to remain inaccessible until Reddit addresses their concerns.

BuyTechBlog’s editorial team independently chooses all recommended products, separate from our parent company. Some of our articles contain affiliate links. We may receive an affiliate commission if you purchase something via one of these links. All listed prices were accurate at the time of publication.

Frequently Asked Questions (FAQs) about Reddit Workforce Reduction

What changes is Reddit reportedly making?

Reddit is said to be undergoing a significant transformation, which includes laying off around 5% of its workforce or about 90 employees. It’s also slowing down its hiring, reducing the intake from the originally planned 300 new employees to just 100.

Why is Reddit laying off a portion of its workforce?

The company is restructuring in an effort to focus on achieving its major goals, including breaking even financially by next year. The workforce reduction is part of a series of steps aimed at increasing the company’s revenues.

How is Reddit affecting developers with its new policy?

Reddit announced it would start charging developers for access to its API. This decision has been impactful not just for big companies but also for independent developers. Some developers, like Christian Selig, the developer of Apollo for Reddit, have reported substantial costs that they can’t bear, which may lead to discontinuation of services.

What are subreddit communities planning in response to Reddit’s decisions?

In response to Reddit’s decisions, dozens of subreddit communities are planning to go offline starting from June 12th in protest. While some plan to remain inactive for 48 hours, others intend to stay dark permanently until Reddit addresses their concerns.

Are the products recommended by BuyTechBlog influenced by their parent company?

No, all products recommended by BuyTechBlog are selected by their independent editorial team. However, some of their stories include affiliate links and they may earn an affiliate commission if a product is purchased through one of these links.

More about Reddit Workforce Reduction

You may also like

5 comments

User1 June 7, 2023 - 10:43 pm

Can’t believe Reddit’s doing this, such a bummer. Gonna miss the third-party apps…

Reply
TechFan42 June 7, 2023 - 10:43 pm

Wow, didn’t think it’d hit the indie devs so hard. I mean, $20 mil a year to keep an app running, that’s crazy!!

Reply
JustBrowsing June 7, 2023 - 10:43 pm

Kinda wondering what Reddit’s endgame is with this. Who’s gonna pay for the API? And what about the users?

Reply
DevGuy101 June 7, 2023 - 10:43 pm

Layoffs and reducing hires? Sounds like Reddit’s got some financial issues they’re not telling us about.

Reply
SubredditMod June 7, 2023 - 10:43 pm

Going dark might be our only option to protest this. Reddit needs to address the issue fast. Seriously.

Reply

Leave a Comment