Businessentrepreneur.com

Snap Inc. to Layoff 10% of Its Total Global Workforce

Snap Inc. is the latest tech company to begin mass layoffs, as the company announced Monday that it plans to lay off 10% of its total global workforce, or roughly 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 company said in a filing with the United States Securities and Exchange Commission dated February 5.

Snapchat’s parent company said that it plans to incur charges ranging between $55 million and $75 million in the first quarter of 2024 due to mainly severance-related costs.


Related: Evan Spiegel Proclaims ‘Social Media Is Dead’ and Predicts Snap Is About to ‘Transcend’ the Smartphone While Lashing Out at Rivals


The layoffs are set to last through Q2 of 2024, dependent on employment laws in certain countries where staff is located.

Snap Inc. had a strong Q3 in 2023, with quarterly revenue of $1.19 billion (up 5% from Q2) and gaining 9 million daily active users in the same period.

Earlier this year, CEO Evan Spiegel sent an internal memo to employees about how the company had “reached a real turning point” and planned to use the rest of 2024 as a “chance to build on all the momentum” he believed the company had developed.

“Technology isn’t going away,” Spiegel penned. “It’s our responsibility to make it more human, more natural, and more seamlessly integrated into our lives so that we can benefit from its positive potential while avoiding the pitfalls. It isn’t just an exciting opportunity – it’s existential.”

The company has struggled with declining revenue over the past two years, most recently cutting 20% of its staff in August 2022 after nearly doubling its workforce during the pandemic.

The company did not specify which departments would be most affected by this round of layoffs.


Read the original article on entrepreneur.com

Denial of responsibility! 1 World Directory is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. The retrieval of information aims to promote and facilitate access to information, respecting intellectual property rights, in accordance with the terms and conditions of the source (entrepreneur.com). If you are the owner of the content and do not want us to publish your materials, please contact us by email – [email protected]. The content will be deleted within 24 hours.

What's your reaction?

Leave A Reply

Your email address will not be published. Required fields are marked *

Related Posts