Snap To Lay Off 10% Of Global Workforce

Snap, parent of Snapchat, said to today it plans to reduce its global headcount of full time employees by about 10%, its latest round of staff cuts amid copious layoffs in the tech sector.

“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 an SEC filing.

The company estimated the move 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 majority of these costs are expected to be incurred during the first quarter of 2024.

Snap said that potential position eliminations in each country are subject to local law and consultation requirements, which could extend the process into the second quarter of 2024 or beyond in certain countries.

The charges that we expect to incur are subject to a number of assumptions, including local law requirements in various jurisdictions, and actual expenses may differ materially from the estimates disclosed above.

Snap will report fourth quarter earnings tomorrow after market close.

MORE