Snap Inc, the parent company of Snapchat, said Monday that it is laying off 10 per cent 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 per cent of its global full time employees. This equates to roughly 500 jobs.
A Snap spokesperson said the cuts were done in part to promote “in-person” work. “We are reorganizing our team to reduce hierarchy and promote in-person collaboration,” the spokesperson said in a statement to CNN on Monday. “We are focused on supporting our departing team members and we are very grateful for their hard work and many contributions to Snap.”
In a regulatory filing Monday, the company added that the cuts were aimed 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.”
Snap said it estimates it will incur approximately US$55 million to US$75 million in costs related to the restructuring, primarily consisting of severance expenses. Snap had some 5,367 full time employees as of October 2023.
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 per cent of its global employees, equating to roughly 1,200 jobs at the time. The company also cut approximately 3 per cent 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 per cent early Monday.