Tech layoffs: Snap to lay off 10% of its global workforce

Snap, the parent company of Snapchat, has announced plans to lay off approximately 528 employees, reducing its global workforce by 10%. This follows a trend of job cuts in other tech and media companies like Amazon and Alphabet earlier this year.

Snap shares experienced an increase of over 2% ahead of trading hours following the announcement. The company anticipates pre-tax charges, predominantly related to severance and other associated costs, ranging from $55 million to $75 million. About $45 million to $55 million of these costs are projected to be future cash expenditures.

The bulk of these expenses are expected to be incurred during the first quarter of 2024. Including these latest layoffs, layoffs.fyi, a tracking website, reports nearly 32,000 job cuts across 122 tech firms since the beginning of the year.

According to a recent report by consultancy Challenger, Gray and Christmas, the tech sector recorded the highest number of layoffs across all industries in 2023. This amounted to 168,032 jobs, significantly impacted by over 10,000 job cuts at Microsoft.