Snap, the parent company of Snapchat, has announced that it will be reducing its workforce by 10 percent, or approximately 540 employees, according to an SEC filing. The decision was confirmed by a company spokesperson and is outlined in the filing as a way to restructure the company and streamline operations. The layoffs are anticipated to best position the business for its future priorities and ensure the capacity for continued investment.
The SEC filing also stated that Snap will be offering severance packages to affected employees, although specific details regarding the packages were not provided. A company spokesperson emphasized that Snap is committed to supporting departing team members during this time of transition. This reduction in workforce comes just before the company is set to report its fourth-quarter earnings for 2023.
Snap’s performance in the third quarter of 2023 exceeded Wall Street expectations by five percent, according to Variety. The upcoming earnings report will shed light on whether these layoffs are a result of financial struggles or a proactive measure following positive financial results. Snap indicated that it is currently in a “quiet period” leading up to tomorrow’s report.
This recent round of layoffs follows a previous reduction in November, during which 20 product managers were let go. However, these recent layoffs are still relatively small in comparison to the significant reduction in force that Snap executed in 2022, when over 1,300 employees were laid off.