Snap To Lay Off 10% Of Staff, Cutting Approximately 500 Jobs

Snap Inc, Snapchat’s parent company, announced Monday that it is laying off 10% of its workforce, becoming the latest technology business to announce a new wave of job cutbacks since the beginning of the year.

Snap announced the new layoffs in a regulatory filing on Monday, stating that the reductions will affect approximately 10% of its global full-time workforce. This corresponds to approximately 500 jobs.

Snap To Lay Off 10% Of Staff, Cutting Approximately 500 Jobs

A Snapchat spokeswoman said the cuts were partly made to boost “in-person” employment. “We are reorganising our team to reduce hierarchy and promote in-person collaboration,” a spokeswoman told CNN on Monday. “We are focused on supporting our departing team members and we are very grateful for their hard work and many contributions to Snap.”

In a regulatory statement on Monday, the company stated that the changes were intended to “best position our business to execute on our highest priorities, and to ensure we have the capacity to invest incrementally to support our growth over time.”

Snap expects that restructuring costs will range between $55 million and $75 million, with severance expenses accounting for most of the cost. Snap had around 5,367 full-time employees as of October 2023.

Snap To Lay Off 10% Of Staff, Cutting Approximately 500 Jobs

Mass layoffs have roiled the tech sector since 2022, and employment losses from Silicon Valley have resumed this year. According to Layoffs, over 30,000 individuals in the IT sector have lost their employment since the beginning of the year. FYI,

According to Layoffs.FYI, data shows that 262,682 layoffs in the tech business were registered in 2023, up from 164,969 the previous year.

Snap To Lay Off 10% Of Staff, Cutting Approximately 500 Jobs

Snap’s latest employment layoffs come after the business said in August 2022 that it was eliminating 20% of its global workforce, which amounted to approximately 1,200 jobs. According to a regulatory filing, the company also reduced its workforce by about 3% last year after announcing the closure of its AR Enterprise unit.

Snap is set to publish its quarterly profits on Tuesday. Snap shares fell about 1.5% early Monday.

SOURCE – (CNN)