Snap to lay off 10% of global workforce, around 500 employees

Social
media
company


Snap
said
Monday
that
it
will
lay
off
10%
of
its

global
workforce,
or
around
500
employees,
in
part
to
“promote
in-person
collaboration.”

The
Snapchat
maker’s
shares
fell
as
much
3%
in
morning
trading
before
paring
back
losses
to
close
down
1.8%.
The
company
has
executed
multiple
rounds
of
layoffs
since
2022,
most
recently
in

November,
when
it
trimmed
a
small
number
of
product
employees.

Snap
expects
it
will
incur
charges
ranging
from
$55
million
to
$75
million,
according
to
a
regulatory
filing.

The
company’s
last

major
round
of
cuts
was
in
August
2022,
when
it
laid
off
20%
of
staff
and
restructured
its
business
lines.

“We
are
reorganizing
our
team
to
reduce
hierarchy
and
promote
in-person
collaboration.
We
are
focused
on
supporting
our
departing
team
members,”
a
Snap
spokesperson
told
CNBC.

The
social
media
platform
is
the
latest
tech
company
to
continue
cutting
in
2024.
Nearly
24,000
tech
workers
lost
their
jobs
in
January
alone.
Already
this
month,
cybersecurity
and
identity
company
Okta
and
Zoom
have
laid
off
staff.

Snap
CEO
Evan
Spiegel

testified
before
the
Senate
Judiciary
Committee
last
week,
one
of
several
social
media
executives
to
face
scrutiny
over
the
damage
their
platforms
caused
young
people.

Investors
generally
support
tech
companies’
efforts
to
trim
back
headcount.


Meta,
for
example,
implemented
a
“year
of
efficiency”
that
saw
brutal
cuts
to
its
workforce.
The
Facebook
owner’s
stock
reached
an
all-time
high
after
it
reported
strong
earnings
and
announced
its
first-ever
dividend.

Amazon
and


Alphabet
have
also
pursued
similar
headcount
reductions.

Like
Google
and
Facebook,
Snapchat’s
revenue
is
highly
dependent
on

digital
advertising
spend.
The
company
has
stuttered
in
some
quarters,
but
managed
to
snap
a
streak
of
revenue
declines
in
its
most
recent
quarter.
The
company
has
also
initiated
a
$500
million
share
buyback
program.

Snap
stock
remains
below
its
debut
price
and
well
off
its
2021
high
of
around
$83.

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