Snapchat has revealed plans to cut around 10% of its global workforce, which amounts to approximately 530 employees. This move follows a previous announcement in August 2022, where the company stated its intention to reduce about 20% of its global workforce.
In the third quarter of 2023, Snapchat initiated the winding down of its AR Enterprise business, resulting in a 3% reduction in its global employee headcount, as indicated in a regulatory filing.
The majority of these job cuts are expected to take place during the first quarter of the year, according to sources cited by Sky News. The filing also disclosed that Snapchat foresees spending up to $75 million on severance benefits and associated expenses as part of the restructuring process.
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With a global workforce exceeding 5,300 employees, this downsizing decision represents a significant adjustment for Snapchat. Approximately 500 employees in the United Kingdom (UK) are part of the global workforce, raising questions about the potential impact of the layoffs in that region.
A spokesperson for Snap acknowledged the ongoing reorganization efforts, emphasizing a focus on reducing hierarchy and promoting in-person collaboration within the team. The spokesperson expressed gratitude for the contributions of departing employees, recognizing their efforts and dedication to the company.
Despite the restructuring, Snapchat maintains a strong presence in the social media landscape, boasting an average daily user base of 406 million, according to data from Demand Sage. However, this announcement of job losses aligns with a broader trend observed across the tech sector, with companies like Microsoft and eBay also announcing layoffs in recent times.
