Snap, the dad or mum of messaging app Snapchat, on Monday mentioned it might lay off greater than 500 workers, becoming a member of different tech firms in a wave of new cost-cutting measures.
The layoffs quantity to 10 p.c of its international work power; the bulk will happen within the first quarter of 2024.
“We’ve got made the tough choice to restructure our crew,” the corporate mentioned in a securities submitting, including that it might take pretax costs of $55 million to $75 million, primarily for severance and associated prices.
Amazon, Google and Microsoft have introduced layoffs this yr, following tens of 1000’s throughout the sector final yr.
Snap laid off a small variety of workers on Friday, Business Insider reported.
The corporate is ready to report earnings on Tuesday. Price-cutting measures at different firms have buoyed inventory costs. Snap shares had been buying and selling about 2 p.c decrease earlier than the market opened on Monday.
Like different social media firms reliant on promoting, Snap has had a tough couple years. Modifications by Apple to its privacy policy in 2021 made it more durable for advertisers to trace customers — one thing that damage Snap and likewise had a heavy effect on Meta, which owns Fb and Instagram.
Snapchat, which has greater than 400 million each day lively customers, skilled a income decline within the first two quarters of final yr and solely 5 percent growth in its most up-to-date quarter, which ended Sept. 30.
In 2022, Snap cut 20 p.c of its work power, or 1,300 jobs, and likewise discontinued no less than six merchandise. It let go almost 20 product managers in November and in September shut a division that sells augmented actuality merchandise to companies, shedding 170 folks.