The parent company of Snapchat is cutting roughly 10% of its global workforce — that's over 500 employees worldwide.
The California-based Snap Inc. is the latest among several tech companies to announce layoffs, as Google, Amazon, eBay, Spotify, TikTok and Microsoft announced they would lay off thousands of employees in the past month.
This isn't the first time in recent years that Snap Inc. has eliminated jobs. In August 2022, Snap announced that it would plan to cut about 20% of all jobs worldwide, and last year, it announced a 3% cut after starting to wind down its AR Enterprise business.
The company stated in a regulatory filing that it expects to incur costs of $55 million to $75 million, primarily for severance and related expenses, with the bulk expected in the first quarter, according to The Associated Press. On Monday, the company's stock declined 2.7% in afternoon trading.
Snap's website reports an average of 406 million daily global users on Snapchat, and over 5 million Snapchat+ subscribers.
Despite these multiple significant layoffs, the U.S. economy added 353,000 jobs, according to the Bureau of Labor Statistics last week, maintaining unemployment below 4% for 24 consecutive months.
SEE MORE: US job market remains strong despite recent layoff announcements
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