Snap, Snapchat's parent company, lays off 10 percent of its workforce, and confirmed by a company spokesperson. The company reported a total workforce of 5,367 employees at the end of the third quarter of 2023, so the layoffs are expected to affect approximately 540 people.
Snap discussed the decision in the SEC filing, saying the layoffs would “best position our company to execute on our highest priorities” and ensure it has “the ability to incrementally invest” over time . The company told us the layoffs were necessary to “reduce hierarchy and promote in-person collaboration.” None of these phrases really mean anything, so let's just call it “corporate restructuring.”
Snap said in the filing that it would provide severance packages to affected employees, but there is no specific information regarding the details of the compensation. A Snap spokesperson confirmed Engadget that it is “focused on supporting our departing team members.”
These layoffs come just a day before Snap reports its fourth-quarter 2023 results. The company actually did quite well in the third quarter, beating Wall Street expectations by about five percent.
If tomorrow's earnings report is bad, it will show why these layoffs are necessary. On the other hand, if it is better than expected, Snap could announce these layoffs now to avoid doing so after a quarter of financial gains. No one likes to see a large company massively downsize its workforce after boasting about its profits. Snap told us the company is in a “quiet period” until tomorrow's fourth-quarter financial report is released.
This follows another round of layoffs in November, during which However, these two pieces of news pale in comparison to Snap's massive 2022 cull,