Snap to put off ‘roughly’ 10% of its workers

Social media big Snap, which operates Snapchat, has introduced plans to chop “approximately” 10% of its workers.

The agency stated in November 2023 it had 5,000 staff, suggesting round 500 persons are going through redundancy.

It is the second wave of mass redundancies from the social media firm, which laid off about 20% of its staff in August 2022.

Snapchat stated the transfer would “reduce hierarchy and promote in-person collaboration”.

“We are focused on supporting our departing team members and we are very grateful for their hard work and many contributions to Snap,” a spokesperson informed the BBC.

According to its most up-to-date annual report, greater than 500 individuals work for the agency within the UK. It is unclear if any of the cuts will fall within the UK.

The newest job cuts come as firms, together with Meta and Google, have been grappling with the right way to stability cost-cutting measures with the necessity to stay aggressive.

According to layoffs.fyi, which tracks job losses within the tech sector, there have been greater than 232,000 job cuts within the business in 2023.

The redundancies had been introduced by the agency in a submitting with the US Securities and Exchange Commission.

Snap stated that the layoffs would have an effect on workers globally, however didn’t specify who could be affected additional.

“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 agency stated.

In its submitting, it stated the cuts could be “subject to local law and consultation requirements” in every nation, which might lengthen the method.

And it estimated the transfer might value it between $55m (£44m) and $75m (£60m) in severance funds “and other charges”.

The announcement comes a day earlier than Snap is ready to report its fourth-quarter monetary outcomes.