Another day, another round of tech layoffs.
Snapchat owner Snap on Monday said that it would be slashing its global workforce by 10 percent.
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The company disclosed the news in a securities filing, writing that “in order to best position our business to execute on our highest priorities, and to ensure we have the capacity to invest incrementally to support our growth over time, we have made the difficult decision to restructure our team.”
Snap, led by CEO Evan Spiegel, says it expects to incur charges in the range of $55 million to $75 million in connection with the cuts.
A Snap spokesperson told The Hollywood Reporter that “we are reorganizing our team to reduce hierarchy and promote in-person collaboration. We are focused on supporting our departing team members and we are very grateful for their hard work and many contributions to Snap.”
The cuts at Snap come amid a larger wave of layoffs at tech companies, with business lines that connect with the world of media and entertainment particularly impacted. Amazon laid off hundreds of people in its Prime Video and MGM division last month, with Alphabet-owned YouTube also shedding staff. Spotify announced plans to cut 17 percent of its global workforce in December, while Microsoft laid off 1,900 employees at Activision Blizzard after completing its acquisition of the game studio.
As generative AI investments continue to spool up at tech companies, and with the advertising market still facing challenges, companies are reassessing their investments and corporate structures.
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