It is estimated that there are about 540.
According to a filing with the Securities and Exchange Commission (SEC) and verified by a representative for the company, Snap, the parent company of Snapchat, is laying off ten percent of its personnel. At the end of the third quarter of 2023, the company reported a total of 5,367 employees; hence, we anticipate that the layoffs will have an impact on approximately 540 individuals.
Within the statement that Snap made with the SEC, the company discussed the move, stating that the layoffs would “best position our business to execute our highest priorities” and guarantee that it had “the capacity to invest incrementally” over the course of time. With the intention of “reducing hierarchy and promoting in-person collaboration,” the corporation informed us that the layoffs were essential. Since none of those sentences actually convey any meaningful information, let’s just go with the phrase “corporate restructuring.”
There is no particular information regarding the terms of the severance packages that Snap will be providing to the affected employees, despite the fact that Snap stated in the filing that it would be providing them. In an interview with Engadget, a spokeswoman for Snap said that the company is “focused on supporting our departing colleagues.”
These layoffs are taking place just one day before Snap is set to disclose its earnings for the fourth quarter of 2023. It was reported by Variety that the corporation actually performed quite well in the third quarter, exceeding the expectations of Wall Street by almost five percent.
If the earnings report that is scheduled for tomorrow is poor, it will demonstrate why these layoffs are required. On the other hand, if it turns out to be better than planned, Snap might announce these layoffs right now in order to protect itself from having to do so after a quarter of financial gains. After boasting about their revenues, few people enjoy witnessing a large firm drastically cut the number of employees they employ. Snap informed us that the company is currently in a “quiet period” until the release of the quarterly financial report tomorrow.
In November, Snap laid off twenty product managers, which was the result of another wave of layoffs that took place in November. However, when compared to Snap’s substantial reduction in workforce in 2022, which resulted in the termination of over 1,300 employees, both of these news stories pale in contrast.