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Last updated on April 3rd, 2024 at 11:10 am
The California-based social media company will emphasize ‘in-person collaboration’ after several rounds of job cuts in recent years
The company behind Snapchat is cutting around 10% of its global workforce, roughly 530 employees, joining a string of tech firms announcing layoffs.
“We are restructuring our team to flatten the hierarchy and encourage in-person collaboration. Our priority is to assist our departing team members,” stated Snap Inc. in a statement to CNBC.
In a regulatory filing, Snap Inc. disclosed that it expects charges of $55 million to $75 million, primarily for severance and associated expenses.
Based in Santa Monica, California, the social media company has undergone several rounds of job cuts in recent years. In August 2022, Snap announced its intention to reduce its global workforce by about 20%. In the third quarter of 2023, it started phasing out its AR Enterprise business, resulting in a 3% reduction in its global employee count, as reported in a regulatory filing. On Friday, the company issued a recall for its Pixy drone due to the risk of overheating batteries causing fires.
According to Snap’s website, there are an average of 406 million daily users on Snapchat every day. The platform also boasts more than 7 million Snapchat+ subscribers.
Snap is one of several tech companies announcing layoffs. Microsoft is reportedly laying off approximately 1,900 employees in its gaming division, as per an internal company memo. Last week, eBay cut 1,000 jobs, about 9% of its workforce, while PayPal trimmed 2,500 positions. In mid-January, Google reduced its workforce by 1,000. Other companies that have recently announced layoffs include TikTok and Amazon divisions Twitch, Audible, and Riot Games. Despite these job cuts, tech giants reported strong earnings last week, leading to a surge in their stock prices. Meta, in particular, benefited from reduced costs, according to investors.
Snap is set to release its fourth-quarter and full-year financial results on Tuesday after the market closes. Its stock declined by over 3.7% in Monday morning trading.
