Reddit
Reddit

Reddit is reportedly cutting 5% of Workforce

What To Know

  • Furthermore, the Company has decided to curtail its hiring efforts for the year, scaling back the intake of new employees from the initially planned 300 individuals to a reduced number of 100.
  • According to Huffman’s email, the Company has experienced a promising performance in the first half of the year, and this restructuring is envisioned to sustain and propel the momentum throughout the second half and beyond.
  • The company stated that as a platform boasting one of the most extensive collections of human-to-human online conversations spanning the past 18 years, it holds a responsibility to act as a custodian of this content for the benefit of its communities.
  • Christian Selig, the sole developer of Apollo for Reddit, has expressed concern, stating that the cost to maintain his app in its current form would amount to a staggering $20 million annually.

Reddit is undergoing a significant reorganization, as revealed in an email from the company’s chief, Steve Huffman, which was obtained by The Wall Street Journal. As part of this restructuring, Reddit has decided to reduce its workforce by letting go of approximately 90 employees, which accounts for about 5 percent of its current staff consisting of 2,000 individuals.

Furthermore, the Company has decided to curtail its hiring efforts for the year, scaling back the intake of new employees from the initially planned 300 individuals to a reduced number of 100. This strategic move reflects the social network’s determination to concentrate its efforts on accomplishing its major objectives, notably reaching a break-even point by the following year.

According to Huffman’s email, the Company has experienced a promising performance in the first half of the year, and this restructuring is envisioned to sustain and propel the momentum throughout the second half and beyond.

This represents just one of the strategic steps Reddit is undertaking to generate revenue. In April, the company unveiled its plan to introduce charges for developers accessing its API. This decision coincided with the entry of major tech players into the realm of generative AI, which commonly relies on internet data obtained through APIs for training purposes.

The company stated that as a platform boasting one of the most extensive collections of human-to-human online conversations spanning the past 18 years, it holds a responsibility to act as a custodian of this content for the benefit of its communities.

While Reddit’s aim to monetize its platform may have initially targeted larger companies, the impact of this decision is felt even by independent developers. Christian Selig, the sole developer of Apollo for Reddit, has expressed concern, stating that the cost to maintain his app in its current form would amount to a staggering $20 million annually.

Similarly, other third-party apps like Narwhal and Company are Fun have alerted their users that they cannot afford to pay for Reddit’s API access, raising the possibility of their eventual closure.

In response to these developments, numerous subreddit communities across a range of topics have organized a collective response. They plan to stage a protest by going dark starting on June 12th.

Some subreddits intend to remain inactive for 48 hours, while others have committed to a prolonged blackout until Reddit addresses the issue at hand. The subreddit communities hope that their actions will draw attention to the concerns surrounding the recent changes and prompt a resolution.

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