Snap to cut 10% of workforce amid spate of tech sector layoffs

The news: Snapchat owner Snap will cut around 10% of its global workforce amid wider tech sector job cuts, Reuters reported.

The numbers: The US tech company said it would cut around 528 employees, equivalent to 10% of its global workforce. Snap expects pre-tax charges between USD55 million ($85 million) and USD75 million, primarily consisting of severance and related costs, the majority of which are likely to take place in the first quarter of 2024.

The Snapchat owner will join fellow tech firms Amazon and Alphabet in announcing layoffs at the start of the year, as almost 32,000 workers have been let go from 122 tech companies in 2024, according to tracking website Layoffs.fyi. Shares of Snap fell 4% to USD16.38.

The context: An unnamed source said that Snap's remote workers are likely to be hardest hit by the layoffs, as the company has been pushing staff to return to the office four days a week over the past year. Meanwhile the California-based firm has struggled in recent years to achieve consistent revenue growth and compete with rivals such as Meta Platforms. Snap will report fourth quarter results on Tuesday.