Snapchat parent company to cut 10% of jobs

Snap Inc., the parent company of social media giant Snapchat, is set to reduce its workforce by 10%, affecting around 530 employees globally.

The company disclosed this information in a regulatory filing on Monday, saying that the layoffs are a strategic move for longterm growth.

In a statement, a spokesperson said that the restructuring is necessary to streamline operations.

“We are reorganizing our team to reduce hierarchy and promote in-person collaboration,” the statement said. “We are focused on supporting our departing team members and we are very grateful for their hard work and many contributions to Snap.”

Based in Santa Monica (Los Angeles County) with an office in San Francisco’s Levi’s Plaza complex, Snap anticipates incurring costs between $55 million and $75 million related to the restructuring, primarily covering severance expenses. The company plans to address its fourth-quarter and full-year 2023 financial results during its quarterly conference call on Tuesday.

In its third-quarter report from September, Snap celebrated a 5% year-overyear increase in revenue and boasted 406 million active daily users.

In August 2022, the company reduced its worldwide workforce by around 20%. During the third quarter of 2023, it initiated the phaseout of its AR Enterprise business by cutting its global employee head count by approximately 3%.

Founded in 2011 by former Stanford University classmates Evan Spiegel, Bobby Murphy and Reggie Brown, Snapchat was among the first social media platforms to integrate augmented filters into photo and video messages.

This month, Snap’s technology helped introduce the first interactive augmented reality mirrors in a U.S. museum at the de Young as part of the groundbreaking “Fashioning San Francisco: A Century of Style” exhibition.

Snap joins a growing list of major tech companies announcing layoffs in 2024, including PayPal, Block, Salesforce, eBay and Google.