OAN’s James Meyers
8:15 AM – Monday, February 5, 2024
The Social media company Snap has announced another round of layoffs amid financial struggles lately.
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Snap made the announcement on Monday saying they will lay off 10% of its global workforce, which is close to 500 employees due to “promote in-person collaboration.”
The company disclosed the news in a securities filing, writing that “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 social media company expects it will incur charges ranging from $55 million to $75 million, according to a regulatory filing.
The latest round of layoffs comes after the company in August 2022, when it laid off 20% of staff.
“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.
Additionally, the latest round of layoffs comes as almost 24,000 tech workers have lost their jobs in January alone.
Amazon laid off hundreds of people in its Prime Video and MGM division last month, with Youtube also cutting a percentage of staff. Furthermore, Microsoft laid off 1,900 employees at Activision Blizzard and Spotify announced that it would be cutting 17% of its global workforce in December.
Snap’s shares fell close to 1% in morning trading and its stock currently remains below its debut price.
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