Snap Inc, the parent company of the social networking platform Snapchat, announced today that it will lay off about 10% of its workforce, or about 528 people. This suggests that the wave of layoffs in the tech sector last year is likely to continue as companies face the impact of economic instability.
Snap announced a day before it reported its fourth-quarter revenue that it would lay off "about" 10% of its global workforce, according to a combination of AFP and Reuters.
"In order to put our business in the best position to execute on the highest priorities and to ensure the ability to invest progressively over time to support the company's growth, we made the difficult decision to restructure our team," Snap said. ”
Snap noted that at the beginning of November last year, the company had about 5,300 employees. This wave of layoffs follows a 20% slash in 2022.
For a long time, Snap has faced difficulties in turning the popularity of its Snapchat among young people into sustained revenue growth, and it is also difficult to compete with rivals such as Meta Platforms, the parent company of Facebook.
Jasmine Enberg, chief analyst at Insider Intelligence, a market research firm, pointed out that the layoffs show that Snap is not doing well.
According to a person familiar with the matter, remote workers have been the hardest hit by Snap's layoffs, which the company began urging employees to come into the office four days a week a year ago.
Prior to this, Amazon Inc. (Amazon), Google's parent company Alphabet and other technology and ** companies also announced layoffs in January.
According to the following**layoffsNearly 32,000 employees at 122 tech companies have been laid off so far this year, according to FYI.
According to a report by the staffing firm Challenger, Gray and Christmas, the tech sector eliminated 168,032 jobs last year, the most of any industry, including more than 10,000 employees at Microsoft.
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