Snapchat Will Lay Off 10% Of Its Global Workforce

(CTN News) – As a result of recent trends in the technology industry, Snapchat has announced that it plans to lay off approximately 10% of its global workforce, which equates to approximately 530 employees.

According to the company’s regulatory filing, restructuring efforts prompted the company’s decision to discontinue its popular multimedia messaging service.

It is expected that the majority of the job cuts will take place in the first quarter of the year, according to sources cited by Sky News. Furthermore, Snapchat anticipates spending up to $75 million on severance benefits and related expenses as part of the restructuring process.

Snap’s decision to downsize marks an important adjustment for the company as it has a workforce exceeding 5,300 employees worldwide. It is estimated that approximately 500 of the company’s global workforce are located in the United Kingdom (UK), raising concerns about the potential impact of the layoffs there.

Snapchat  spokesperson acknowledged the reorganization efforts,

Emphasizing the importance of reducing hierarchy and encouraging in-person collaboration within the organization.

Additionally, the spokesperson expressed appreciation for the contributions made by departing employees, highlighting their commitment to the organization.

In spite of the restructuring, Snapchat remains a formidable presence in the social media landscape, with an average daily user base of 406 million, according to Demand Sage data.

While the announcement of job losses fits within a broader trend observed in the tech sector, companies such as Microsoft and eBay have also announced layoffs in recent years.

Last year, Meta, the parent company of social media giants Facebook and Instagram, announced 10,000 job reductions. Immediately following Snapchat’s announcement, shares declined 4% on Monday, highlighting investor concerns regarding the implications of the restructuring.

Stakeholders are eagerly anticipating Snap’s fourth-quarter earnings on Tuesday.

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