Snapchat, in its regulatory filing, has disclosed plans to lay off approximately 10% of its workforce, totaling around 530 employees. The majority of these job cuts are expected to occur in the first quarter, as reported by Sky News.
The filing also detailed that Snapchat will incur up to $75 million in severance benefits and related costs due to the layoffs. The California-based company currently employs over 5,300 people globally, with about 500 of them based in the United Kingdom.
While it remains uncertain whether the downsizing will impact UK employees, a Snap spokesperson mentioned a reorganization aimed at reducing hierarchy and fostering in-person collaboration. They expressed gratitude towards departing team members for their contributions.
Snapchat boasts an average of 406 million daily active users, according to Demand Sage. Recent announcements of job cuts in the tech industry include Microsoft's plan to eliminate 1,900 positions and eBay's intention to cut 1,000 roles.
Meta, the parent company of social media giants Facebook and Instagram, also made headlines last year with 10,000 announced redundancies. Following Monday's announcement, Snap's shares dropped by 4%.
The company is scheduled to unveil its fourth-quarter results on Tuesday.
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