January 2024 saw a slew of tech layoffs, and now it appears the company has no plans to slow down. Snap Inc is the latest tech giant to announce layoffs.
The company behind popular social media app Snapchat will cut about 10% of its workforce, totaling about 529 employees. It’s worth noting that this isn’t the first time the company has laid off employees. The company had previously cut its workforce by about 20% in 2022 and about 3% last year.
The decision comes as the company is reportedly experiencing difficulties with advertising revenue. Additionally, its other projects, such as the Snapchat Plus subscription service and hardware products like Pixy drones and Snap Spectacles, failed to make a mark in the market.
As Snap announced in an SEC filing, it highlighted the move as critical to its future growth prospects.
“To better position our business to execute on our highest priorities and ensure our ability to invest incrementally to support our long-term growth, we have made the difficult decision to restructure our team,” the company said in the filing.
“As a result, we currently estimate that we will incur pre-tax charges of $55 million to $75 million, primarily consisting of severance and related charges and other charges, of which $45 million to $55 million is expected to be future cash charges,” it added.
This comes after companies including Google, Amazon and eBay started layoffs last month in January. Google specifically launched a layoff plan that affected hundreds of employees across various teams. That includes employees in the voice assistant division, as well as hundreds of people working on the hardware teams responsible for Pixel, Nest and Fitbit. In addition, Google has also made personnel changes to its augmented reality team and central engineering team.
Amazon also announced it was also cutting jobs, laying off hundreds of employees at its Prime Video and MGM Studios divisions.
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