Snap, the parent company of Snapchat, on Monday announced to lay off approximately 10 percent of its global full-time employees.
The company had around 5,300 employees at the start of 2023. Snap previously cut 20 percent of its staff in 2022 and had a smaller cut of 3 percent last year.
“We currently estimate that we will incur pre-tax charges in the range of $55 million to $75 million, primarily consisting of severance and related costs, and other charges, of which $45 million to $55 million are expected to be future cash expenditures,” the company said in a filing with the US Securities and Exchange Commission (SEC).
The majority of these costs are expected to be incurred during the first quarter of 2024.
“Potential position eliminations in each country are subject to local law and consultation requirements, which may extend this process into the second quarter of 2024 or beyond in certain countries,” said Snap.
The company said the job cuts were meant to “best position our business to execute on our highest priorities, and to ensure we can invest incrementally to support our growth over time.”
This layoff followed a smaller headcount reduction late last year when Snap reorganized its product team.
The company is set to report its earnings after the market’s close on February 6.
