This announcement follows a trend of significant layoffs in the tech industry in 2024, with at least 24,000 tech employees being laid off, including at Amazon, Google, and Microsoft. These layoffs have boosted company profits, and Snap hopes to see similar results. The company reported a net loss of $368 million in its third quarter earnings for 2023.
Key takeaways:
- Snapchat parent company, Snap, announced it will be laying off 10% of its global workforce, impacting nearly 540 of its 5,400 employees.
- The company expects to incur charges between $55 million to $75 million as a result of the layoffs, primarily due to severance packages.
- This follows a trend in the tech industry, with at least 24,000 tech employees laid off since the start of 2024, including at Amazon, Google, and Microsoft.
- Snap's stock slid 3% during intraday trading and the company is set to announce its fourth-quarter earnings on Feb. 6.