Snap Inc., the parent company of Snapchat, is joining the ranks of tech firms across the nation by announcing plans to cut their workforce by 10%, which equates to approximately 500 employees. The decision was disclosed in a filing with the United States Securities and Exchange Commission on Monday.
These workforce adjustments are slated to extend into the second quarter of 2024, contingent upon compliance with employment regulations in various countries where Snap operates. Despite experiencing a robust performance in the third quarter of 2023, marked by a revenue surge to $1.19 billion and an uptick of 9 million daily active users, Snap emphasizes the importance of optimizing its organizational structure.
In an internal memo to employees, CEO Evan Spiegel underscored the significance of harnessing technology to enrich human experiences, positioning Snap to navigate the evolving digital landscape.
“Technology isn’t going away,” Spiegel remarked. “It’s our responsibility to make it more human, more natural, and more seamlessly integrated into our lives so that we can benefit from its positive potential while avoiding the pitfalls. It isn’t just an exciting opportunity — it’s existential.”
Snap’s recent decision to downsize follows recent years of financial decline as a result of the shifting market dynamics. Snap previously attempted to address this issue by reducing its workforce in August 2022 by 20% after a period of rapid expansion during the pandemic.
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