Monday, May 27, 2024
Advertisement
  1. You Are At:
  2. News
  3. Technology
  4. Why is Snapchat's parent company, Snap, cutting 10 per cent of its workforce?

Why is Snapchat's parent company, Snap, cutting 10 per cent of its workforce?

Snap's parent company, Snap, is reducing its workforce by 10%, which means around 530 employees will be laid off. Here's everything you need to know.

Written By: Vishal Upadhyay New Delhi Published on: February 06, 2024 6:40 IST
snapchat, snap, snap lays off 10 percent employees, snap layoffs, snapchat company layoff, tech news
Image Source : FILE Representational Image

Snapchat's parent company, Snap, revealed plans to let go of about 10 per cent of its global full-time workforce. The move comes after previous staff reductions, including a 20 per cent cut in 2022 and a 3 per cent reduction last year. At the beginning of 2023, Snap had approximately 5,300 employees.

Financial impact and timing

According to IANS, Snap anticipates incurring pre-tax charges between $55 million and $75 million, covering severance, related costs, and other expenses. Of this, $45 million to $55 million is expected to be future cash expenditures. 

The majority of these expenses will be faced in the first quarter of 2024. The process of potential position eliminations in each country is subject to local laws and consultation requirements, possibly extending into the second quarter of 2024 or beyond in certain countries.

“Potential position eliminations in each country are subject to local law and consultation requirements, which may extend this process into the second quarter of 2024 or beyond in certain countries,” said Snap.

Reasons behind the layoffs

Snap clarified that the job cuts aim to position the business for optimal execution of key priorities strategically. The move is also intended to ensure the capacity for incremental investments supporting future growth. This decision follows a smaller headcount reduction late last year, coinciding with Snap's reorganisation of its product team.

Upcoming earnings report

Snap is scheduled to disclose its earnings after the market's close on February 6. 

Inputs from IANS 

ALSO READ | Deepfake video scam: Hong Kong-based company lost USD 25.6 million over video conference call

ALSO READ | Google bids farewell to 'Cached' web page feature - What it means?

Advertisement

Read all the Breaking News Live on indiatvnews.com and Get Latest English News & Updates from Technology

Advertisement
Advertisement
Advertisement
Advertisement