Snap Inc. is reducing its workforce by roughly 10 percent worldwide, joining the chorus of technology companies that have announced a fresh round of cuts since the start of the year.
The social-media company estimated that the reductions will result in pre-tax charges of $55 million to $75 million from severance and related costs, as well as other charges including $45 million to $55 million in future cash expenditures. Most of these costs will occur in the first quarter, Snap said in a filing Monday.
Snap said the cuts are being made to “best position our business to execute on our highest priorities.”
Like its social media peers, Snap has been working to offset a deceleration in ad revenue, coping with the slump by cutting jobs and culling projects that are no longer seen as a priority. Just four months ago, Snap announced it was closing a division focused on making augmented reality services for businesses, pulling the plug on what was its latest attempt to diversify the ad-dependent company. Shuttering the business was expected to cut 170 jobs.
The company employed about 5,400 workers as of September. A 10 percent reduction based off that total would amount to about 540 jobs lost. Snap said the mass layoffs may extend into the second quarter of 2024 while the company works to comply with local laws.
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