Snap announced Monday that it would lay off 10% of its workforce, adding to the debacle that has continued among U.S. tech giants since the beginning of the year.
Snap said it expects to incur pre-tax charges “in the range of $55 million to $75 million” as a result of the cuts.
The costs “primarily consist of severance and related costs,” the majority of which are expected to be reflected in the company’s first-quarter results, according to a regulatory filing.
“To best position our business to deliver on our top priorities and ensure our ability to invest incrementally to support our growth over time, we are restructuring our team. “We have made this difficult decision,” the application states.
Based on the approximately 5,400 employees announced by the company as of September last year, this series of layoffs may have affected approximately 540 employees.
Snap stock rose more than 1% in early trading following the announcement.
The company has struggled in recent quarters with declining revenue from digital advertising.
The company did not immediately respond to The Post’s request for comment.
With the layoffs, Snap may be looking to emulate the recent success of one of its main rivals, Facebook and Instagram’s parent company Meta.
The company’s profits have soared since last year, when CEO Mark Zuckerberg declared a “year of efficiency” that included mass layoffs.
Meta’s stock price soared 20% last Friday after the company revealed that its profits had more than tripled compared to a year ago, making it the biggest single-day market capitalization in history at 197 billion yen. recorded a rise in the dollar value.
The company also announced its first-ever quarterly dividend, which is expected to provide Mr. Zuckerberg with an annual profit of $700 million.
Meta had 67,317 employees worldwide as of the end of last year, a 22% decrease from the previous year.
Snap Inc. is the latest in a wave of companies to announce job cuts since the start of the year.
Last month, Google laid off well over 1,000 employees across various departments to shift resources to developing advanced AI.
Company boss Sundar Pichai has cited “sustainable cost reduction” as one of Google’s parent company Alphabet’s key goals for 2024.
Elsewhere, eBay, which is struggling in the online marketplace, laid off 9% of its workforce, or about 1,000 people. Microsoft and Amazon also cut jobs.
Snap CEO Evan Spiegel was among several high-profile tech executives to face tough questions from a Senate committee last week about the child online exploitation crisis plaguing the social media platform. There was only one person.
This is breaking news. Please check the latest information.
