Snap is laying off 10% of its workforce worldwide – which equals about 500 employees, to “promote in-person collaboration.” The last time Snap made significant job cuts was in August 2022, when it laid off 20% of its staff.
“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,” Snap.
“As a result, we currently estimate that we will incur pre-tax charges in the range of $55 million to $75 million, primarily consisting of severance and related costs, and other charges, of which $45 million to $55 million are expected to be future cash expenditures.”
Snap’s shares are currently trading below their initial debut price and significantly lower than their peak in 2021, which was around $83.
“We are reorganising our team to reduce hierarchy and promote in-person collaboration,” said Snap spokesperson in a press statement.
“We are focused on supporting our departing team members and we are very grateful for their hard work and many contributions to Snap,” they added.
A tough start to the year: Over 24,000 tech workers lost their jobs in January alone. So far this month, cybersecurity and identity companies Okta and Zoom have laid off staff.