Snap Inc cuts 530 employees, 10% of workforce, to boost in-person work
The owner of Snapchat is laying off approximately 10% of its worldwide workforce, or about 530 employees, the latest tech company to announce layoffs.
“We are reorganizing our team to reduce hierarchy and promote inperson collaboration. We are focused on supporting our departing team members,” a Snap Inc statement to CNBC read.
Snap Inc said in a regulatory filing that it currently estimates $55m to $75m in charges, mostly for severance and related costs.
The social media company based in Santa Monica, California, has eliminated jobs multiple times in recent years. Snap announced in August 2022 that it planned to cut about 20% of its global workforce. In the third quarter of 2023, it began winding down its AR Enterprise business, which included reducing its global employee headcount by approximately 3%, according to a regulatory filing. The company issued a recall for its Pixy drone on Friday due to fire risk from overheating batteries.
There are 406 million daily users on Snapchat every day on average, according to Snap’s website. It has more than 5 million Snapchat+ subscribers.
Snap is among several in the tech industry announcing layoffs. Microsoft is laying off some 1,900 employees in its gaming division, according to an internal company memo. Ebay laid off 1,000 employees last week, roughly 9% of its workforce; Paypal, 2,500; in mid-January, Google cut 1,000. Other companies that have announced layoffs include TikTok, Amazon divisions Twitch, Audible and Riot Games. After multiple waves of layoffs, though, tech giants emerged last week with strong earnings reports that sent their stocks soaring, particularly Meta, with investors seeing lowered costs as a benefit.
Snap is expected to report its fourth-quarter and full-year financial results on Tuesday after the market close. Its stock declined more than 3.7% in Monday morning trading.