Snap Inc Announces Layoffs, Cutting 10% of Global Workforce, Approximately 500 Jobs
Snap Inc, the parent company of Snapchat, has revealed plans to lay off 10% of its staff, impacting around 500 global full-time employees. The tech firm joins the recent trend of major companies implementing workforce reductions at the beginning of the year.
The announcement came through a regulatory filing on Monday, with Snap stating that the restructuring aims to foster “in-person” work and reduce hierarchy within the organization. A Snap spokesperson emphasized the focus on supporting departing team members and expressed gratitude for their contributions to Snap.
In the regulatory filing, Snap outlined that the job cuts are designed to position the business optimally, focusing on executing top priorities and ensuring the capacity for incremental investments to support long-term growth. The company anticipates incurring restructuring costs of approximately $55 million to $75 million, primarily related to severance expenses.
As of October 2023, Snap had 5,367 full-time employees. The tech sector has experienced significant layoffs since 2022, with around 30,000 workers losing their jobs in the industry since the beginning of this year, according to data compiled by Layoffs.fyi. In 2023, there were 262,682 tech industry layoffs, following 164,969 cuts in the previous year.
These latest job cuts follow Snap’s announcement in August 2022 that it was reducing its global workforce by 20%, equivalent to approximately 1,200 jobs at that time. The company had also implemented a 3% staff reduction the previous year, coinciding with the closure of its AR Enterprise business, as stated in a regulatory filing.
Snap is scheduled to report its quarterly earnings on Tuesday, and shares for Snap experienced an approximate 1.5% dip early Monday.
