Reddit CEO Huffman is all praises for Musk on his way of running Twitter

Reddit CEO Steve Huffman stated that he drew an important lesson from Elon Musk's actions at Twitter

Reddit CEO Steve Huffman has praised Elon Musk's management of Twitter's finances, praising the aggressive cost-cutting and layoffs at the microblogging platform.

Huffman's comments come at a time when he himself is battling widespread protests over the application programming interface (API) changes on his platform.

Musk's influence on Twitter and Reddit

Huffman in an interview with NBC News said, "Long story short, my takeaway from Twitter and Elon at Twitter is reaffirming that we can build a really good business in this space at our scale."

"Now, they've taken the dramatic road," he said.

"And I guess I can't sit here and say that we're not either, but I think there's a lot of opportunity here," he added.

 

Twitter laid off the bulk of its staff. Musk cut over 3,700 jobs at Twitter last year, or half of the company's workforce, in an effort to cut costs following his $44 billion acquisition.

On the other hand, Huffman is trying to turn Reddit profitable.

He stated that there is one concrete area where Musk's example has been clear and that is job cuts.

"As a company smaller than theirs, sub-$1 billion in revenue, I used to look at Twitter and say, 'Well, why can't they break even at four or five billion in revenue? What about their business do we not understand?' Because I think we should be able to do that quite handsomely," Huffman said.

"And then I think one of the non-obvious things that Elon showed is what I was hoping would be true, which is: You can run a company with that many users in the ads business and break even with a lot fewer people," he added.

Reddit laid off 90 employees in June.

The ongoing Reddit blackout

Meanwhile, thousands of subreddits have gone dark on the app to mark their protest against the new pricing policy, resulting in millions of users being unable to see posts from their favourite community.

A subreddit is a forum or community of Reddit users who gather to discuss a specific topic or subject. Some of Reddit's most popular communities that joined the protest were r/videos, r/reactiongifs, r/earthporn, and r/lifeprotips.

Several developers have also expressed concerns about the viability of their services under the new pricing policy.