Mass layoffs: Snapchat parent Snap to fire 10% of workforce; know why
Mass layoffs: Snap Inc. is reducing its global workforce by approximately 10%, joining a chorus of technology companies that have announced new rounds of cuts since the beginning of the year.
Snap in a filing on Monday stated that the cuts are being made to “best position our business to execute on our highest priorities.” According to a spokesperson, the social media company is reorganizing the team to reduce hierarchy and promote in-person collaboration. The stock fell 3.1% to $16.51 in New York, tracking a broader stock market decline.
Snap, like its social media peers, has been working to offset a decline in ad revenue, dealing with the downturn by cutting jobs and cancelling projects that are no longer deemed important. Snap, the parent company of the Snapchat app, and Meta Platforms Inc. were severely impacted by changes Apple Inc. made to its privacy policy in 2021, making it more difficult for advertisers to track users. However, Meta has rebounded, reporting a 25% increase in sales in the fourth quarter, its largest quarterly increase in two years.
As of September, the Santa Monica, California-based company had approximately 5,400 employees. A 10% reduction based on that total would result in the loss of approximately 540 jobs. Snap stated that the mass layoffs may continue into the second quarter of 2024 as the company works to comply with local laws.
-
