Snap, the parent company of Snapchat, has announced plans to cut its workforce by 10%, which would affect over 500 employees based on the figures released in November 2023. This decision, disclosed in an SEC filing, is aimed at supporting the company's growth. Most of the associated costs are expected in the first quarter of 2024, with potential extensions into the second quarter depending on local regulations and other factors. The company will report its earnings after the market closes on February 6.
This recent round of layoffs comes shortly after the reduction late last year when Snap reorganized its product team to streamline decision-making processes. Additionally, Nima Khajehnouri, Snap's VP of Engineering, departed along with fewer than 20 others in the product division. Last September, Snap shut down its enterprise services division after less than a year. The company's investments in hardware products, such as Snap Spectacles and the Pixy drone, have not been successful, with the latter discontinued and recently recalled due to a fire risk.
In 2022, Snap underwent a larger restructuring, resulting in a 20% reduction in staff.
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