Snapchat’s owner Snap plans to lay off 10% of its global workforce after downsizing. Most of the $55–75 million pre-tax relocation expense will occur in Q1 2024.
Snapchat parent Snap will lay off 10% of its global full-time personnel. A 20% staff cut in 2022 and 3% last year preceded the move. Snap started 2023 with 5,300 workers.
Severance, related, and other charges are expected to cost Snap $55 million to $75 million pre-tax. Forecasted cash expenditures are $45 million to $55 million.
Most of these costs will occur in Q1 2024. Some countries may extend position eliminations into the second quarter of 2024 or beyond due to local legislation and consultation procedures.
Snap said “potential position eliminations in each country are subject to local law and consultation requirements, which may extend this process into the second quarter of 2024 or beyond in certain countries.”
Snap said job cuts allow the firm to strategically execute key goals. Additionally, the change allows for future growth-supporting extra expenditures. This follows Snap’s product team rearrangement and late-year personnel reduction.
Conclusion
Snapchat’s owner Snap is looking to lay off 10% of its global full-time workers after prior downsizing. Pre-tax severance, related expenses, and other costs are estimated at $55–75 million. Most of these costs will occur in Q1 2024. Layoffs prepare the organization for strategy execution and growth investments.
