Snap to lay off 10% of global workforce, around 500 employees
- Snap said it will lay off 10% of its workforce worldwide, around 500 employees, to "promote in-person collaboration."
- The Snapchat-maker's last major round of cuts was in 2022, when it laid off 20% of staff.
- Snap CEO Evan Spiegel testified before the Senate Judiciary Committee last week.
Social media company Snap said Monday that it will lay off 10% of its global workforce, or around 500 employees, in part to "promote in-person collaboration."
The Snapchat maker's shares fell as much 3% in morning trading before paring back losses to close down 1.8%. The company has executed multiple rounds of layoffs since 2022, most recently in November, when it trimmed a small number of product employees.
Snap expects it will incur charges ranging from $55 million to $75 million, according to a regulatory filing.
The company's last major round of cuts was in August 2022, when it laid off 20% of staff and restructured its business lines.
"We are reorganizing our team to reduce hierarchy and promote in-person collaboration. We are focused on supporting our departing team members," a Snap spokesperson told CNBC.
The social media platform is the latest tech company to continue cutting in 2024. Nearly 24,000 tech workers lost their jobs in January alone. Already this month, cybersecurity and identity company Okta and Zoom have laid off staff.
Snap CEO Evan Spiegel testified before the Senate Judiciary Committee last week, one of several social media executives to face scrutiny over the damage their platforms caused young people.
Investors generally support tech companies' efforts to trim back headcount. Meta, for example, implemented a "year of efficiency" that saw brutal cuts to its workforce. The Facebook owner's stock reached an all-time high after it reported strong earnings and announced its first-ever dividend.
Amazon and Alphabet have also pursued similar headcount reductions.
Like Google and Facebook, Snapchat's revenue is highly dependent on digital advertising spend. The company has stuttered in some quarters, but managed to snap a streak of revenue declines in its most recent quarter. The company has also initiated a $500 million share buyback program.
Snap stock remains below its debut price and well off its 2021 high of around $83.
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