Snap Inc, the company that runs multimedia instant messaging app and service, Snapchat, announced on Monday that it is laying off 528 of its employees, which is 10 per cent of its workforce, joining several other tech and media companies like Amazon and Alphabet that announced layoffs in 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," Snap said in a statement.
“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 company added.
A spokesperson for the company claimed that the move is aimed at reducing hierarchy and promoting 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,” the spokesperson said, according to TechCrunch.
According to Layoffs.fyi, about 32,000 employees have been laid off by various companies since the beginning of 2024.
Reuters quoted a Challenger, Gray and Christmas as saying that the tech sector had as many as 168,032 layoffs in 2023, accounting for the highest number of job losses across various industries.
