Michelle ThompsonThe developer of the instant messaging software Snapchat laid off 20% of its workers in 2022, affecting around 1000 roles.
Snap, a multinational technology company based in the United States, announced on Monday that it will reduce 10% of its global staff, or approximately 500 employees.
“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 firm stated in a filing with the US Securities and Exchange Commission.
“As a result, we presently estimate that we will incur pre-tax charges ranging from $55 million to $75 million, principally consisting of severance and related costs, as well as other charges, with $45 million to $55 million estimated to be future cash expenditures. The majority of these costs are likely to be incurred in the first quarter of 2024,” it stated.
While the corporation has conducted several layoffs since 2022, the most recent wave was in November, when around 20 employees with product management titles were laid off.
In August 2022, the developer of the instant messaging program Snapchat said that it will begin slashing 20% of its workforce, affecting over 1,000 roles.
Dozens of companies in the US IT sector have slashed jobs since the fourth quarter of last year, citing decreased income and declining advertising revenue.
Uber, Reddit, Disney, 3M, Amazon, Yahoo, Affirm, Zoom, Dell, IBM, Microsoft, Salesforce, PayPal, and Google’s parent company, Alphabet, have all let off thousands of staff since the fourth quarter of 2023.
