Snap To Lay Off 10% Of Global Workforce

(RTTNews) - Social media company Snap Inc. (SNAP), Monday announced that it will lay off 10% of its global workforce, or around 500 employees.

In an SEC filing, Snap said, "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."

The company has announced several rounds of layoffs since 2022, most recently in November, when it laid off a small number of product employees.

As a result of the layoff, the company currently estimates to incur pre-tax charges in the range of $55 million to $75 million, primarily consisting of severance and related costs, and other charges, of which $45 million to $55 million are expected to be future cash expenditures.

The majority of these costs are expected to be incurred during the first quarter of 2024.

Snap becomes the latest tech company to announce layoffs in 2024. Nearly 24,000 tech workers lost their jobs in January alone.