Snapchat’s parent company, Snap Inc., is reducing its global staff by about 10%, equating to around 530 positions, joining the list of tech firms announcing job cuts.
In a regulatory disclosure, Snap Inc. projected it would face between $55 million and $75 million in expenses, predominantly for severance and related charges, with the bulk expected in the first quarter.
This follows a previous workforce reduction in August 2022 when the company stated it would decrease its staff by nearly 20%.
Additionally, in the third quarter of 2023, Snap began phasing out its AR Enterprise business, which led to a further 3% reduction in its workforce.
Snapchat boasts an average daily user base of 406 million and over 7 million subscribers to its premium service, Snapchat+.
The tech sector has seen several layoffs recently, with Microsoft cutting around 1,900 jobs in its gaming department, eBay eliminating roughly 1,000 positions, and Google dismissing numerous employees from its hardware, voice assistance, and engineering teams.
Other tech firms like TikTok, Amazon’s Twitch and Audible, and Riot Games have also announced job cuts. Snap’s financial performance for the fourth quarter and the entire year will be disclosed after the market closes on Tuesday.
eBay has reached a settlement to pay $59 million following accusations that it facilitated the sale of devices capable of producing illicit drugs.
The US Justice Department claimed that the online marketplace was a platform for the sale of numerous pill presses and machines for encapsulating drugs, some of which were purchased by individuals later convicted of drug offenses.
These devices are known to be used in the creation of fake pills, some of which are dangerously mixed with fentanyl, at a time when the opioid crisis is escalating in numerous US states.
