Snap Inc, the parent company of Snapchat, said Monday that it is laying off 10% of its staff, becoming the latest tech company to conduct a fresh round of job cuts since the start of the year.
Snap disclosed the latest layoffs in a regulatory filing on Monday, saying the cuts will impact approximately 10% of its global full time employees. This equates to roughly 500 jobs.
“In order to 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, we have made the difficult decision to restructure our team,” the company said in a regulatory filing Monday.
Snap said it estimates it will incur approximately $55 million to $75 million in costs related to the restructuring, primarily consisting of severance expenses.
Mass layoffs have roiled the tech sector since 2022, and the job cuts emanating from Silicon Valley have continued to trickle in this year. Since the start of the year, some 30,000 workers in the tech sector have lost their jobs, according to a tally compiled by Layoffs.fyi .
There were some 262,682 tech industry layoffs recorded in 2023, per Layoffs.fyi data, after 164,969 cuts the previous year.
The latest job cuts at Snap come after the company said in August 2022 that it was cutting some 20% of its global employees, equating to roughly 1,200 jobs at the time. The company also cut approximately 3% of its staff last year, after it announced it was shuttering its AR Enterprise business, per a regulatory filing.
Snap is scheduled to report quarterly earnings on Tuesday. Shares for Snap dipped approximately 1.5% early Monday.
Snap did not immediately respond to CNN’s request for comment Monday.
Source: https://edition.cnn.com/2024/02/05/tech/snap-snapchat-layoffs/index.html