Snap cuts 10% of its staff
Snap, the owner of the Snapchat social network, has announced plans to cut about 10% of its workforce in 2024, The Verge reports. Two years ago, Snap cut about 20% of its staff.
The publication notes that Snap faced the same problems as other companies in the technology market, in particular with a decrease in advertising revenues. Snap’s revenue only increased in the third quarter of 2023, while it declined in the first and second quarters. The company plans to publish data on the fourth quarter in the near future.
Snap did not specify in which divisions the layoffs will take place. Company representatives only explained that the reductions are to prepare Snap to implement the highest priority tasks. In total, Snap plans to spend up to $75 million on layoff compensation.
At the same time, the company sets ambitious goals for 2024. In particular, the CEO of Snap, Evan Spiegel, stated that the company hopes to increase the daily audience by approximately 17%, advertising revenues by 20%, and also double the number of Snapchat Plus subscribers (now there are about 7 million people).
By the end of 2022, Snap had about 5,300 employees. The exact headcount for 2023 will be published with the annual report shortly. Neowin says the new layoffs will affect 529 Snap employees.