Snap, the social media behemoth behind Snapchat, has revealed intentions to reduce its workforce by around 10%. The company disclosed the latest layoff in a regulatory filing on Monday, saying that the move will impact approximately 10% of its global full-time employees, which equates to roughly 500 jobs. This is the second round of job cuts that the company has made in recent years. In August 2022, Snap laid off about 20% of its staff during a business restructuring. The company also did a minor headcount reduction last November, trimming several product managers.
Snap said the latest layoff will focus on improving team communication and collaboration by “reducing hierarchy and promoting in-person collaboration.” The company noted that it will shift resources to its core camera app and expand its content offerings. It will also invest more in its augmented reality software and hardware development.
The company expects the layoffs to result in pretax charges ranging from $55 million to $75 million, primarily related to severance costs. The company added that the process could be extended into the second quarter of 2024 or beyond in some countries due to local law and consultation requirements.
It is one of many tech firms to announce layoffs this month. Cybersecurity and identity provider Okta, Zoom, and Microsoft have also trimmed their workforces. In January, nearly 24,000 workers were laid off in the tech sector, and this trend will continue as companies seek to cut costs and focus on artificial intelligence.
In the case of Snap, the layoffs come as the company is set to report quarterly earnings later on Tuesday. The company’s shares dipped by as much as 3% during intraday trading on Monday.
The company is under intense scrutiny over its impact on child safety. CEO Evan Spiegel was one of five tech leaders facing a US Senate Judiciary Committee hearing last week. Other companies under the spotlight include TikTok, Amazon divisions Twitch and Audible, and Riot Games.
