Snap is latest tech company to slash jobs, laying off 10% of workforce

Details: Snap in a statement said the cuts “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.”

• The company said it had more than 5,300 employees in its last earnings report.
• The firm said it anticipates it will incur roughly $55 million to $75 million in pre-tax charges “primarily consisting of severance and related costs,“ as well as ”other charges, of which $45 million to $55 million are expected to be future cash expenditures.”
• The majority of the costs attributed to the changes are expected to be incurred during the first quarter of 2024, Snap Inc. said.

What they're saying: "We are reorganizing our team to reduce hierarchy and promote in-person collaboration,” a Snap spokesperson said.

• ”We are focused on supporting our departing team members and we are very grateful for their hard work and many contributions to Snap."

Be smart: This is the second major round of cuts for Snap Inc. in the past few years.

• The firm laid off 20% of staff amid a different business restructuring in August 2022.

The big picture: More Big Tech companies are pointing to a renewed focus on AI as a justification for layoffs, Axios’ Megan Morrone reports.

• Google laid off hundreds of workers in January to focus more on AI.
• Salesforce, Duolingo and others have also announced cuts or hiring freezes to focus on AI.

What’s next: Snap Inc. Is expected to report its fourth quarter earnings results on Tuesday.