Snapchat
Snapchat

Snap is laying off 10 percent of its workforce

What To Know

  • The company had 5,367 employees at the close of the third quarter in 2023, so this move will affect approximately 540 individuals.
  • In the SEC filing, Snap explained that these layoffs would optimize the company for its primary goals, ensuring the ability to invest gradually over time.
  • Alternatively, if the earnings surpass expectations, Snap might pre-emptively announce the layoffs to avoid negative fallout after a financially successful quarter.
  • This comes on the heels of another round of layoffs in November, where Snap parted ways with 20 product managers.

Snap, the parent company of Snapchat, is cutting 10 percent of its workforce, per a company spokesperson’s SEC filing and confirmation. The company had 5,367 employees at the close of the third quarter in 2023, so this move will affect approximately 540 individuals.

In the SEC filing, Snap explained that these layoffs would optimize the company for its primary goals, ensuring the ability to invest gradually over time. The layoffs are aimed at streamlining hierarchy and fostering in-person collaboration. To simplify, it’s a corporate restructuring.

According to Snap, affected employees will receive severance packages, although specific details are not provided.

These layoffs occur just a day before Snap is set to disclose its fourth-quarter earnings for 2023. Despite beating Wall Street expectations by about five percent in Q3, tomorrow’s report may shed light on the necessity for these layoffs.

Alternatively, if the earnings surpass expectations, Snap might pre-emptively announce the layoffs to avoid negative fallout after a financially successful quarter. Snap conveyed that the company is in a “quiet period” until the Q4 financial report is released tomorrow.

This comes on the heels of another round of layoffs in November, where Snap parted ways with 20 product managers. However, both recent events are minor compared to Snap’s substantial reduction of over 1,300 employees in 2022.

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