Snap to cut 10% of global workforce
Over 30K global tech positions have already been cut in 2024
Snap Inc. said on Monday that it plans to cut 10% of its global workforce.
"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 announced in a Securities and Exchange Commission filing Monday.
The parent company of social media platform Snapchat said it expects to incur charges between $55 million and $75 million during the first quarter, primarily due to severance and related costs.
Snap most recently cut jobs in August 2022, laying off about 20% of its workforce. The company employed 5,288 people as of Dec. 31, 2022.
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The Snapchat messaging application is seen on a phone screen Aug. 3, 2017. (REUTERS/Thomas White/File Photo / Reuters)
Snap said the layoffs are expected to last through the second quarter of 2024. In some countries, it will last beyond that.
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In 2024 alone, about 122 tech companies have cut over 30,000 positions worldwide, according to Layoffs.fyi.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SNAP | SNAP INC. | 11.41 | +0.78 | +7.28% |
Okta announced on Feb. 1 that it is cutting 7% of its workforce in order to fulfill its "commitment to profitable growth while running the business with greater efficiency."
About 400 employees will be impacted by the move, according to a regulatory filing.
Amazon announced on Jan. 10 that it was trimming the headcount within its media divisions. Mike Hopkins, senior vice president of Prime Video and Amazon MGM Studios, told staff that the organization would be "eliminating several hundred roles."
Google said on Jan. 17 that it was planning to lay off several hundred employees on its advertising-sales team in another round of cost-cutting measures.
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Google headquarters is seen in Mountain View, California, on May 15, 2023. (Photo by Tayfun Coskun/Anadolu Agency via Getty Images / Getty Images)
Additionally, Google parent Alphabet Inc. is reportedly slashing jobs within its innovation lab called X as it adopts a new structure. The cuts resulting from this transition will impact support staff, sources told the outlet. The number of roles impacted was not disclosed.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMZN | AMAZON.COM INC. | 197.12 | -1.26 | -0.64% |
| GOOGL | ALPHABET INC. | 164.76 | -2.87 | -1.71% |