Proactive Investors - Snap Inc (NYSE:SNAP), the parent company of the visual social media app Snapchat, is reducing its headcount by another 10% as it continues to be challenged by a shrinking ad market and failed hardware projects such as its selfie drone Pixy.
About 530 of the company’s 5,300 global full-time employees as of the start of the year will be let go, it was announced on Monday.
This comes after the company cut about 20% of its staff in 2022 and a further 3% in 2023.
“In order to best position our business to execute on our highest priorities, and to ensure we have the capacity to invest incrementally to support our growth over time, we have made the difficult decision to restructure our team,” the company said in a Securities Exchange Commission (SEC) filing.
Snap said the job cuts would cost the company between $55 million to $75 million in pre-tax charges, primarily related to severance payments, of which $45 million to $55 are expected to be future cash expenditures. The company expects the majority of these costs will be incurred during the first quarter of 2024.
Snap is set to report its fourth-quarter 2023 financial earnings on Tuesday, February 6, after the stock market closes.
Shares of the company were down 1.5% at US$16.77 in early trade on Monday.