Snap, the parent company of messaging app Snapchat, announced on Monday that it would lay off more than 500 employees as it joins other tech companies in a wave of new cost-cutting measures.
The layoffs represent 10% of the global workforce. For the most part he is expected to occur in the first quarter of 2024.
“We have made the difficult decision to reorganize our team,” the company said in a securities filing, adding that the move will cost between $55 million and $75 million before taxes, primarily for severance and related costs.
Amazon, Google and Microsoft have announced job cuts this year, following tens of thousands of layoffs across their industries last year.
Snap laid off a small number of employees on Friday, Business Insider reported.
The company is scheduled to report financial results on Tuesday. Other companies' cost-cutting measures have pushed up stock prices. Snap stock was trading about 2% lower before the market opened on Monday.
Like other social media companies that rely on advertising, Snap has had a rough few years. Apple's 2021 privacy policy changes that made it more difficult for advertisers to track users hurt Snap and also had a big impact on Meta, which owns Facebook and Instagram.
Snapchat, which has more than 400 million daily active users, saw revenue decline in the first two quarters of last year, growing just 5% in its most recent quarter ending Sept. 30.
Snap will cut 1,300 jobs, or 20% of its workforce, in 2022 and discontinue production of at least six products. The company laid off nearly 20 product managers in November, and in September shut down a division that sells augmented reality products to businesses, laying off 170 people.