Snap is latest tech company to slash jobs, laying off 10% of workforce
Snapchat parent Snap Inc. will lay off 10% of its full-time staff, or roughly 530 employees, the tech firm said Monday in a regulatory filing.
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.
- 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.