Snap, the parent company of Snapchat, has announced that it will be implementing another round of layoffs, cutting 10% of its workforce. The decision to restructure the team was made in order to position the company for growth and to support its highest priorities, according to Snap CFO Derek Andersen. The layoffs come just before Snap is set to release its fourth-quarter earnings.
A spokesperson for Snap stated that the company is reorganizing its team to reduce hierarchy and promote in-person collaboration. They also expressed gratitude for the hard work and contributions of the departing team members. It has been reported that several dozen Snap employees were let go on Friday, with more cuts expected.
This is not the first time Snap has implemented layoffs, as the company previously laid off 20% of its staff in 2023. Snap faces challenges in the digital advertising market and fierce competition from platforms like TikTok and Meta. However, CEO Evan Spiegel remains optimistic about the company's future in augmented reality.
Snap is not alone in making cuts in the tech industry. Google recently cut hundreds of workers from its core engineering and hardware teams, while Amazon eliminated "several hundred" roles in its film and TV production arm. Messaging app Discord also laid off approximately 170 people. Despite these cuts, analysts suggest that the impact on the broader labor market may be limited, as the rate of layoffs nationwide remains relatively low according to data from the Bureau of Labor Statistics.
In conclusion, Snap's decision to implement another round of layoffs is aimed at restructuring the team and positioning the company for growth. While the tech industry as a whole has seen several companies making cuts, the impact on the broader labor market appears to be limited. The rate of layoffs nationwide remains relatively low.