Snap Inc. lays off employees
According to some recent pieces of information, Snap Inc. is laying off more employees. Reportedly, the company will lay off 10% of its workforce, which accounts for almost 500 employees. The company regards this move as an effort to effectively operate. The recent decision by Snap indicates a bigger trend across the tech industry, where several companies are laying off employees to work efficiently. For instance, Microsoft laid off almost 1900 employees and Discord laid off 17% of its workforce.
In January, the tech sector observed more than 24,000 job cuts
The goal of Snap’s layoffs is to boost teamwork in person and help the company cut down on layers. This is a calculated move to maintain the company’s strength and direction, particularly in light of the recent changes in the tech sector. Recently, Zoom, Okta, and other big tech companies have laid off their workforces. Reportedly, the tech sector saw almost 24,000 job cuts in January 2024.
Back in 2022, Snap underwent several rounds of layoffs. This is part of a continuous endeavor to match the company’s objectives for expansion and innovation with its stated goals. The estimated cost of these most recent layoffs is between $55 million and $75 million. The CEO, Evan Spiegel, recently addressed the Senate Judiciary Committee over the company’s impact on youth. It seems like social media is another topic that has attracted attention.
Apart from these, the company managed to earn more revenue from digital ads. It begins to purchase $500 million in shares again. However, the efforts don’t appear to be fruitful since the value of Snap’s share is quite low compared to its initial public offering price. Notably, it is no match to the peak that was observed back in 2021. It indicates that the company is going through a rough time, but it is still putting in efforts to explore the most relevant options for its growth in the changing landscape of the tech industry.
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