Snap becomes the Latest Company to Perform a Layoff, Firing more than 500

Every week, since the year started, tech companies have been dismissing a number of their workers, and this week Snap Inc. became the latest company to conduct a layoff, firing 10% of its workforce. 

The social media company announced on Monday, 5th of February, 2024 that it has to let go over 500 workers to "best position their business to execute on our highest priorities." 

This marks the most recent round of job cuts for the social media company, following a pattern of layoffs. Snap let go of nearly 20 workers in November, and back in August 2022, the company reduced its workforce by 20% as part of a restructuring effort. The company faces challenges as it primarily attracts a younger audience, struggling to appeal to older age demographics. 

The number of layoffs is said to be "over 500" because the company did not disclose a specific number but only said that it is “reorganizing” its team to “reduce hierarchy and promote in-person collaboration,” according to Forbes. 

Snap reportedly relies heavily on advertising revenue and has faced challenges in boosting sales in recent years. However, the main issue Snap encounters is the difficulty of monetizing social media platforms primarily focused on messaging. 

According to Snap, the layoffs will lead to pre-tax expenses ranging from $55 million to $75 million for severance and associated expenses, along with future cash outlays estimated between $45 million and $55 million. 

This year, the tech industry has recorded one of the major layoffs in the history of layoffs. As of 2 weeks ago, the total number of layoffs amounted to 21,000 but it must certainly have exceeded this number. 

Again, this is another testament that a huge chunk of techies have lost their jobs already. Now, the question is if a lot of tech workers are being fired just at the beginning of the year, how many more will be fired even before the year runs out? 

If you are affected, the best thing you can do for yourself is to take a break (if you need it) and launch your job search which is why we are there for you. Sign up on our website to have full access to all job openings, and other available resources on the career advice page. Also, you may want to follow us on social media: 

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