Tech layoffs 2024: Snap to lay off 10% of employees

(Reuters) – Snap said on Monday it would cut around 528 employees, or 10% of its global workforce, a sign that the spate of layoffs seen in 2023 could persist as firms grapple with economic uncertainty.

“In order to best position our business to execute on our highest priorities, and to ensure we have the capacity to invest incrementally to support our growth over time, we have made the difficult decision to restructure our team,” Snap said.

The Snapchat parent expects pre-tax charges in the range of $55 million to $75 million, primarily consisting of severance and related costs, and other charges, of which $45 million to $55 million are expected to be future cash expenditures.

The majority of these costs are expected to be incurred during the first quarter of 2024.

Snap joins several other tech and media firms such as Amazon and Alphabet that announced layoffs in January.

Overall, almost 32,000 workers have been let go of in 122 tech companies since the start of the year, according to tracking website Layoffs.fyi.

The tech sector shed 168,032 jobs in 2023 and accounted for the highest number of layoffs across industries, according to a report by Challenger, Gray and Christmas earlier this month. That included more than 10,000 cuts at Microsoft.

—By Samrhitha Arunasalam, Reuters

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