Reddit announced on Tuesday that it is laying off 90 people, or approximately 5% of its workforce, joining a number of technological firms that have been reducing employment across corporate America.
As the tech sector prepares for a downturn in the economy, companies like Meta Platforms (META.O) have started cutting jobs after aggressively hiring during the pandemic.
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Last month, Meta, the company that owns Facebook, reduced employment throughout its business and operations divisions as part of the final phase of a three-part layoff wave that was initially intended to eliminate 10,000 positions.
Reddit, which was spun off from magazine conglomerate Conde Nast in 2011, saw a recent surge in appeal due to the popularity of WallStreetBets and other forums on its platform that have become a venue for retail investors to speculate on stocks.
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The Wall Street Journal first reported Reddit’s move on Tuesday, citing an email sent to employees from Chief Executive Steve Huffman.
Huffman said the company would also reduce its hiring for the rest of the year to about 100 people from an early plan of 300, according to the WSJ report.
In December 2021, Reddit had confidentially filed for an initial public offering with the U.S. securities regulator after the company’s message boards became the go-to destination for day traders during a meme stock frenzy.
