Snap laid off 10% of its workforce
Snap, the parent company of messaging app Snapchat, said on Monday it will lay off more than 500 employees, joining other tech companies in a wave of new cost-cutting measures.
The layoffs represent 10 percent of its global workforce; The majority will be in the first quarter of 2024.
“We have made the difficult decision to reorganize our team,” the company said in a securities filing, adding that it would take a pretax charge of $55 million to $75 million primarily for severance and related costs.
After laying off thousands of people in the sector last year, Amazon, Google and Microsoft have announced layoffs this year.
Snap laid off a small number of employees on Friday, business Insider informed of.
The company is scheduled to report earnings on Tuesday. Cost-cutting measures at other companies have pushed stock prices higher. Snap shares were trading down about 2 percent before the market opened on Monday.
Snapchat, which has more than 400 million daily active users, experienced revenue declines in the first two quarters of last year and grew only 5 percent in its most recent quarter, which ended Sept. 30.
In 2022, Snap plans to cut its workforce by 20 percent, or 1,300 jobs, and also discontinue at least six products. It let go about 20 product managers in November and closed a division that sold augmented reality products to businesses in September, laying off 170 people.