Tech Layoffs: Snap To Cut 10 Percent Of Workforce (Photo by Thought Catalog on Unsplash)
Tech companies have begun 2024 with job cuts. Snap, the parent company of the social media platform Snapchat, is the latest tech firm to cut jobs. Snap announced that it would lay off more than 500 employees, which amount to 10 percent of its global workforce.
“We have made the difficult decision to restructure our team,” said Snap in a securities filing, as quoted by the New York Times. The company expects pre-tax charges in the range of $55 million to $75 million, mainly for severance and costs. The New York Times also reported that Snapchat witnessed a revenue decline in the first two quarters of last year. Notably, the company has marked only 5 percent growth in its most recently reported quarter, which ended September 30, 2023.
Meanwhile, Snap spokesperson Farrin Jay said in an email to The Verge that the company is reorganizing the team to reduce hierarchy and promote in-person collaboration. “We are focused on supporting our departing team members and we are very grateful for their hard work and many contributions to Snap,” Farrin Jay added, as quoted by the Verge.
In 2024, several companies have announced that they are reducing jobs. Recently, TikTok cut about 60 jobs, and it mainly affected the sales and advertising division. In January, tech giant Google reportedly laid off hundreds of workers in various divisions. According to layoff tracking site Layoff.fyi, the tech industry has witnessed a total of 32,576 layoffs across 130 companies in 2024. Economic factors and a focus on AI talent are considered to be the main reasons for tech layoffs.
