Snapchat’s parent company to lay off 10% of employees to ‘reduce hierarchy’, company says

Snapchat maker Snap is the latest tech company to make layoffs with its newly announced plans to cut 10% of its workforce, the company said on Monday. Based on headcount data released by Snap in November 2023, the layoffs will affect about 500 employees when it takes effect. saw small scale layoffs It then had north of 5,000 employees.

layoffs announced in an SEC filingWhere Snap explained that the move was necessary to support its further growth.

“To best position our business to execute on our top priorities, and to ensure we have the time to invest incrementally to support our growth over time,” the filing said. capacity, we have made the difficult decision to restructure our team.” “As a result, we currently estimate that we will incur a pre-tax charge in the range of $55 million to $75 million, consisting primarily of severance and related costs and other charges, of which $45 million to $55 million is expected in the future Cash expenditure.”

Snap said most of those costs will be incurred in the first quarter of 2024, although some costs could extend into the second quarter due to local legislation and other factors. The company will report its earnings after markets close on Monday, February 5.

“We’re reorganizing our team to reduce hierarchy and foster personal collaboration,” a Snap spokesperson said in a statement to TechCrunch. He added, “We are focused on supporting our departing team members and we are extremely grateful for their hard work and many contributions to Snap.”

This is the second wave of layoffs in a matter of months. Small reduction in the number of employees at the end of the previous year That’s when Snap reorganized its product team, focusing on reducing layers and increasing the speed of decision making, the company said at the time. Snap’s vice president of engineering…

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