Snap will lay off 10% of its workforce

Snap, the parent company of Snapchat, will lay off 10% of its employees, a company spokesperson confirmed. The company reported a headcount of 5,367 employees at the end of the third quarter of 2023, so the layoffs are expected to affect approximately 540 people.

Snap discussed the decision in an SEC filing, saying the layoffs will “allow our business to optimally execute on our highest priorities” and ensure “the ability to invest incrementally” over time. . The company tells us the layoffs are necessary to “reduce layers and promote in-person collaboration.” None of these sentences have any real meaning, so let’s just say “corporate reorganization.”

Snap said in the filing that it would pay severance packages to affected employees, but did not provide specific information on the details of the severance packages. A Snap spokesperson confirmed enjet It is “focused on supporting our outgoing team members.”

The layoffs come a day before Snap is scheduled to report fourth-quarter 2023 earnings. The company actually performed quite well in the third quarter, beating Wall Street expectations by about 5%.

If tomorrow’s earnings report is bad, it will show why these layoffs are needed. On the other hand, if things go better than expected, Snap could announce these layoffs now to avoid doing so after a quarter of financial gains. No one wants to see a large company slash its workforce after bragging about profits. Snap tells us it’s in a “quiet period” ahead of its fourth-quarter financial report tomorrow.

This follows another round of layoffs in November, however, both pieces of news pale in comparison to Snap’s massive layoffs in 2022,