Add Snapchat to the list of tech/media companies to announce layoffs.
Snap Inc., the owner of Snapchat, is slicing approximately 10% of its worldwide workforce — about 530 employees – after announcing in a regulatory filing that it estimates $55 million to $75 million in charges, mostly for severance and related costs.
Company officials expect the majority of the costs to be incurred in the first quarter, according to a report from the Associated Press.
It’s the latest round of layoffs announced by the Santa Monica, Calif.-based company. In August 2022, the company said it planned to cut about 20% of its global workforce. In the third quarter of 2023, it began winding down its AR Enterprise business, which included reducing its global employee headcount by approximately 3%, according to a regulatory filing, according to the AP report.
According to information on Snapchat’s website, the service averages some 406 million daily users and has more than 7 million Snapchat+ subscribers.
Snap is among several in the tech industry announcing layoffs. Microsoft is laying off some 1,900 employees in its gaming division, according to an internal company memo. Online retailer eBay Inc. will cut about 1,000 jobs, or an estimated 9% of its full-time workforce. And Google has said that it was laying off hundreds of employees working on its hardware, voice assistance and engineering teams. Other companies that have announced layoffs include TikTok, Amazon divisions Twitch and Audible and Riot Games.