Snap, the parent company of Snapchat, is laying off 10 percent of its workforce, according to an SEC filing and confirmed by a company spokesperson. The company reported a total number of 5,367 employees at the end of 2023’s third quarter, so the layoffs should impact around 540 people.
Snap discussed the decision in the SEC filing, saying the layoffs would “best position our business to execute our highest priorities” and ensure it has “the capacity to invest incrementally” over time. The company told us the layoffs were necessary to “reduce hierarchy and promote in-person collaboration.” None of those sentences really mean anything, so let's just go with "corporate restructuring."
Snap said in the filing that it would be issuing severance packages to the impacted employees, but there's no specific information regarding package details. A Snap spokesperson confirmed to Engadget that it's “focused on supporting our departing team members.”
These layoffs are happening just one day before Snap is scheduled to report fourth-quarter earnings for 2023. The company actually did pretty well in Q3, beating out Wall Street expectations by about five percent, according to Variety.
If tomorrow's earnings report is bad, it'll show why these layoffs are necessary. On the other hand, if it's better than expected, Snap may be announcing these layoffs now to avoid doing so after a quarter of financial gains. Nobody likes to see a big company massively reduce its headcount after bragging about earnings. Snap told us the company’s in a “quiet period” until tomorrow’s Q4 financial report drops.
This follows another round of layoffs in November, in which Snap let go of 20 product managers. However, both of these news items pale in comparison to Snap’s massive culling in 2022, which eliminated over 1,300 employees.
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