Snap, the parent company of Snapchat, has decided to lay off more than 500 employees, which accounts for 10 per cent of its workforce. This comes at a time when the tech industry is already witnessing a high rate of layoffs.
In a regulatory filing, Snap mentioned that it expects an incurring pre-tax charges, primarily composed of severance and associated expenses, as well as other charges, estimated to range between $55 million and $75 million.
Between $45 million to $55 million of this amount is projected to be future cash expenditure, with the majority of these costs expected to be incurred during the first quarter of 2024.
"On February 5, 2024, we announced a plan to reduce our global headcount by approximately 10 per cent of our global full time employees. 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 regulatory filing read.
Since the beginning of 2024, the tally of job cuts has surpassed the 30,000 mark, reflecting a widespread trend across the tech industry. Leading companies such as Google, Meta, Zoom, Microsoft, and eBay have implemented significant layoffs, impacting many employees.
In the domestic sphere, startups like Swiggy and Flipkart have also made huge workforce reductions. Major IT firms like Wipro have also joined the trend, contributing to the overall impact on employment.