Snap to hand out pink slips to 10% staff
As per the company, the move was to "promote in-person collaboration"
Snapchat’s parent Snap has decided to lay off 529 employees, which constitutes 10% of its workforce in a fresh round of job cuts. Media reports state that this step has been taken to “promote in-person collaboration.” The social media giant’s last major round of cuts was in 2022, when it laid off 20% of staffers.
The company’s shares fell as much as 3% in morning trading before paring back losses to close down 1.8%. According to a regulatory filing, Snap expects it will incur pre-tax charges ranging from $55 million to $75 million, mainly comprising severance and associated expenses, as well as other charges. $45 million to $55 million are projected to be future cash outlays. The primary timeframe for incurring the majority of these costs is expected to be the first quarter of 2024, it added.
Snap’s Q4 earnings call is set to happen on February 7, Wednesday.
In response to exchange4media’s query about the impact of global layoffs on India, the company said, “We aren’t sharing specific breakdowns by country. We have Q4 earnings tomorrow and are in a quiet period until then, so there is not a lot more detail that we can share.”
The company had earlier noted in its SEC filing, “On February 5, 2024, we announced a plan to reduce our global headcount by approximately 10% of our global full-time 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.”
