Snap, the parent company of Snapchat, is laying off about 10% of its workforce, affecting more than 500 employees.
The company cited the need to restructure to support its growth and reduce hierarchy.
Google and its parent company, Alphabet, have also been making significant job cuts, with Google planning to eliminate 12,000 jobs, about 6% of its workforce, and more than 1,000 jobs being cut this year.
Why did Trump last week try to take credit for the stock market setting record highs?
Why is Trump now attacking the Fed Chairman—who he nominated—for trying to improve the economy?
Because the economy is significantly improving. We have a #BidenBoom and Trump can’t stop it. https://t.co/aFlVD01nsE
— Ted Lieu (@tedlieu) February 2, 2024
“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 stated.
“As a result, we currently estimate that we will 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 filing said.
“We are reorganizing our team to reduce hierarchy and promote in-person collaboration,” one company representative said.
“The layoffs don’t bode well for the state of Snap’s business ahead of its Q4 2023 earnings,” principal analyst Jasmine Enberg said.
Other tech companies such as Amazon, Microsoft, Discord, Salesforce, eBay, and PayPal have also announced layoffs.
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