Snap on Monday, said that it will lay off about 528 workers, or 10% of its total workforce worldwide.
The company, which controls the photo-messaging app Snapchat, has long had trouble competing with bigger rivals like Facebook owner Meta Platforms, which announced its first dividend on Thursday following employee layoffs last year, and converting its appeal with younger users into steady revenue growth.
“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 said.
Pre-tax charges are anticipated by the corporation to be between $55 million and $75 million, mostly from severance and associated costs, as well as other charges, of which $45 million to $55 million are anticipated to come from future cash outlays.
Snap has joined internet and media companies like Amazon and Alphabet, which also announced layoffs in January. This suggests that the wave of tech layoffs that began in 2023 may continue as businesses struggle with uncertain economic conditions.
