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  • Writer's pictureFlow Australia

Snapchat owner to cut 10 per cent of global workforce

The owner of Snapchat says it will lay off about 530 employees from its global workforce.

The owner of Snapchat is cutting about 10 per cent of its worldwide workforce, or about 530 employees, the latest tech company to announce lay-offs.

Snap Inc said in a regulatory filing that it currently estimates $US55 million to $US75 million ($A85 million to $A116 million) in charges, mostly for severance and related costs.

It expects the majority of the costs to be incurred in the first quarter.

This is not the first time Snap has eliminated jobs. 

The Santa Monica, California-based company announced in August 2022 that it planned to cut about 20 per cent of its global workforce. 

In the third quarter of 2023, it began winding down its AR Enterprise business, which included reducing its global employee headcount by approximately 3 per cent, according to a regulatory filing. 

There are 406 million daily average users that use Snapchat every day, on avarege, according to Snap's website. 

It has more than 5 million Snapchat+ subscribers.

Snap is among several in the tech industry announcing lay-offs. 

Microsoft is laying off 1900 employees in its gaming division, according to an internal company memo. 

Online retailer eBay Inc will cut about 1000 jobs, or an estimated 9 per cent of its full-time workforce.

And Google has said that it was laying off hundreds of employees working on its hardware, voice assistance and engineering teams. 

Other companies that have announced lay-offs include TikTok, Amazon divisions Twitch and Audible and Riot Games.

Snap is expected to report its fourth-quarter and full-year financial results on Tuesday after the market close.

Its stock declined more than 3.7 per cent in Monday morning trading. 


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