Snapchat has revealed plans to cut around 10% of its global workforce, approximately 530 employees, in a move mirroring recent trends in the tech industry.
The California-based company, renowned for its multimedia messaging app, attributes the decision to restructuring efforts, as per its regulatory filing. The bulk of these job cuts is expected during the first quarter of the year, with Snapchat estimating spending up to $75 million on severance benefits and related expenses. With a global workforce exceeding 5,300, the downsizing represents a significant shift for Snapchat, especially considering that around 500 employees are based in the UK, raising questions about the potential impact on that region.
A spokesperson for Snap acknowledged the restructuring, highlighting a focus on reducing hierarchy and promoting in-person collaboration within the team. The spokesperson expressed gratitude for the departing employees’ contributions, emphasizing their dedication to the company. Despite the layoffs, Snapchat maintains a strong presence in the social media landscape, boasting an average daily user base of 406 million, according to Demand Sage data. However, this move aligns with the broader trend in the tech sector, as companies like Microsoft and eBay have also recently announced layoffs.
Meta, the parent company of Facebook and Instagram, made headlines last year with its announcement of 10,000 job redundancies. Following Snapchat’s announcement, the company’s shares experienced a 4% decline on Monday, highlighting investor concerns about the implications of the restructuring. Snapchat is set to unveil its fourth-quarter results on Tuesday, with stakeholders eagerly awaiting insights into the company’s financial performance amid these strategic adjustments.
