Snap joins the growing list of tech companies laying off employees this year.
In an SEC filing, Snap Inc. has announced a fresh round of layoffs that will affect about 10% of its total workforce. Here are the details.
January 2024 brought forth a series of tech layoffs, and now it appears that companies have no intention of slowing down. Snap Inc is the latest tech giant to announce layoffs.
The company behind the popular social media app Snapchat is laying off around 10 percent of its workforce, totaling approximately 529 employees. Notably, this isn’t the first time the company has reduced its staff; it previously laid off about 20 percent of its workforce in 2022 and approximately 3 percent last year.
This decision follows the company’s reported struggles with advertising revenue. Additionally, its other projects, such as the Snapchat Plus subscription service, and hardware products like the Pixy drone and the Snap Spectacles, failed to make a mark in the market.
As announced in its SEC filing, Snap highlights that this move was essential for its future growth prospects.
“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 the filing.
It added, “As a result, we currently estimate that we will incur pre-tax charges in the range of $55 million to $75 million, primarily consisting of severance and related costs, and other charges, of which $45 million to $55 million are expected to be future cash expenditures.”
This comes after companies, including Google, Amazon and ebay kickstarted layoffs last month in January. Google is specific launched a layoff drive affecting hundreds of employees across various teams. This included staff in its Voice Assistant unit, as well as hundreds in the hardware team responsible for Pixel, Nest, and Fitbit. Furthermore, Google made workforce adjustments in its augmented reality team and central engineering team.
Amazon, too, announced that it is also in the process of downsizing by letting go of hundreds of employees in its Prime Video and MGM Studios divisions.
