In a move that reflects recent trends in the tech industry, Snapchat has revealed plans to lay off around 10% of its global workforce, amounting to around 530 employees.
The California-based company, known for its popular multimedia messaging app, cited restructuring efforts as the main driver behind the decision, according to its regulatory filing.
According to sources cited by Sky News, most of the layoffs are expected to take place during the first quarter of the year. The filing further revealed that Snapchat expects to spend up to $75 million on severance and related expenses as part of the restructuring process.
With a workforce of over 5,300 employees worldwide, Snapchat’s decision to downsize represents a significant change for the company. Among its global workforce, around 500 employees are based in the United Kingdom (UK), raising questions about the potential impact of layoffs in the region.
A Snap spokesperson acknowledged the reorganization effort and emphasized the focus on reducing hierarchy and encouraging personal collaboration within the team. The spokesperson also expressed gratitude for the contributions of the departing employees, highlighting their efforts and dedication to the company.
Despite the restructuring, Snapchat remains a formidable presence in the social media arena, boasting an average daily user base of 406 million, according to Demand Sage data. However, the announcement of job losses is in line with a broader trend seen across the technology sector, with the likes of Microsoft and eBay also recently announcing layoffs.
Meta, the parent company of social media giants Facebook and Instagram, made headlines last year with the announcement of 10,000 layoffs. The company’s shares fell 4% on Monday after Snapchat’s announcement, underscoring investor concerns about the ramifications of the restructuring.
Snapchat is scheduled to report its fourth-quarter results on Tuesday, with stakeholders eagerly awaiting insights into the company’s financial performance amid these strategic adjustments.
