Snapchat parent Snap announces fresh layoffs, set to cut its global workforce by 10%

Snapchat parent Snap announced a plan to reduce our global headcount by approximately 10% of our global full-time employees.

In a regulatory filing on Monday, Snap, the parent company of Snapchat, revealed that it plans to fire over 500 workers.

The owner of Snapchat is cutting approximately 10% of its worldwide workforce, or about 528 employees, just the latest tech company to announce layoffs. (AP)

The social media firm announced in a filing with the Securities and Exchange Commission (SEC) that it will reduce its global workforce by around 10%. With 5,367 full-time employees as per Snap's most recent headcount, the latest round of staff cuts corresponds to roughly 540 employees.

The parent company of Snapchat anticipates pre-tax charges ranging from $55 million to $75 million, according to a regulatory filing by the company.

Nearly $45 and $55 million of this amount is expected to come from future monetary outlays. It also stated that the first quarter of 2024 is projected to be the main timeframe for incurred costs. Snap's stock increased by 2% in pre-market trading.

“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.," Snap stated in a filing with the SEC, CNBC reported.

Last layoff in Snap took place in August 2022

The last time Snap announced major layoffs was in August 2022, when the company revealed plans to reduce headcount by 20% worldwide.

The tech industry has made numerous cuts throughout 2023 and into early 2024. In its games division, Microsoft let go of roughly 1,900 employees last month, while eBay eliminated over 1,000 jobs.

Evan Spiegel, the CEO of Snap, was one of five internet CEOs called before Congress last week to testify regarding the safety of children on their platforms. Senators from both parties grilled the CEOs during their testimony.

Senator Lindsey Graham (R-S.C.) accused Meta CEO Mark Zuckerberg and TikTok CEO Shou Zi Chew of having "blood on your hands," as members of the Senate Judiciary Committee blasted all five businesses during Wednesday's session.