The company that operates the photo-posting social networking site ``Snapchat'' lays off approximately 540 people.
Snap, which operates Snapchat, has announced that it will lay off 10% of its total workforce. A spokesperson said the reason for the layoffs was 'to facilitate face-to-face interactions between employees.'
Snap is cutting 10 percent of its staff - The Verge
Snap layoffs: Company to cut 10% or around 500 employees
Snap is laying off 10 percent of its workforce
https://www.engadget.com/snap-is-laying-off-10-percent-of-its-workforce-161146546.html
On February 5, 2024, Snap filed a business review document with the U.S. Securities and Exchange Commission (SEC) and announced that it plans to lay off 10% of its employees. As of the end of the third quarter of 2023, Snap's total number of employees is reported to be 5,367, so this layoff is expected to affect approximately 540 people.
The layoffs are aimed at 'repositioning the business to deliver on the company's top priorities and ensuring long-term investment capacity,' according to the filing. The spokesperson added: 'The aim is also to reduce internal hierarchy and encourage face-to-face interactions.'
The document states that ``$55 million (approximately 8.2 billion yen) to $75 million (approximately 11.1 billion yen) will be spent as retirement benefits and related expenses.'' Furthermore, most of these costs are expected to be incurred during the first quarter of 2024, which makes it highly likely that layoffs will occur during the first quarter. In addition, Snap is scheduled to announce its financial results for the fourth quarter of 2023 on February 6, 2024.
Snap stock fell 3% after the planned layoffs were revealed, but the decline has since tapered to a close of 1.8% lower.
Snap has undergone multiple layoffs in recent years, most recently firing 20 product managers in November 2023. Prior to that, it was carried out in September 2022, when about 1,300 people, or 20% of the workforce, were laid off .
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