Snap announced, on Monday (5 February), its decision to reduce its workforce by around 10%, amounting to approximately 528 employees globally.
This development underscores the prevailing trend of job cuts within the technology sector, which has persisted since 2023, as companies deal with economic uncertainties.
Snap, the owner of the popular photo messaging app Snapchat, has long grappled with the challenge of translating its widespread appeal among young users into consistent revenue growth. The company faces stiff competition from larger rivals, including Meta.
The layoff announcement comes just ahead of Snap’s fourth-quarter results, scheduled for release on 5 January, leaving industry analysts to speculate about the overall health of the company.
In a statement addressing the layoffs, Snap issued a statement: “In order to best position our business to execute on our highest priorities, and to ensure we have the capacity to invest incrementally to support our growth over time, we have made the difficult decision to restructure our team.”
Snap’s move to reduce its workforce aligns with similar moves by other leading technology companies, including Amazon and Alphabet, both of which announced layoffs in January.
Remote workers at Snap have seen the widest job cuts, as the company has been urging its employees to return to the office for four days a week.
Layoffs.fyi, a tracking website, reported that almost 32,000 workers have been laid off from 130 tech companies, so far, in 2024.
The tech sector witnessed a significant reduction of 168,032 jobs in 2023, including over 10,000 cuts at Microsoft.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData