Snapchat’s Parent Set to Lay Off 10% of Global Workforce to ‘Reduce Hierarchy’

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The parent company of Snapchat — Snap — is laying off about 10 percent of its workforce as layoffs continue to stalk the tech sector.

Snap announced the cut Monday, which will impact more than 500 employees, according to TechCrunch, which noted that as of last year’s third quarter, Snap had 5,367 workers.

“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 said in a Securities and Exchange Commission filing.

“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,” a Snap representative said.

Snap made layoffs last year after a 20 percent workforce cut in 2022.

“The layoffs don’t bode well for the state of Snap’s business ahead of its Q4 2023 earnings,” principal analyst Jasmine Enberg said.

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