Social media company Snapchat has joined the layoffs trend as its parent firm Snap Inc. recently said it will be laying off 10% of its global full-time workforce following a drop in revenue in the digital advertising market.
How many employees will be impacted by these layoffs?
While the company did not disclose the exact number of employees and departments that will be affected by this round of layoffs, The company said that these job cuts are crucial 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."
Snap estimates pre-tax charges
As part of the development, Snap estimates $55 million to $75 million in pre-tax charges, primarily consisting of severance and related costs and other charges, of which $45 million to $55 million are expected to be future cash expenditures.
The majority of these costs are expected to be incurred during the first quarter of 2024, the company said in an exchange filing.
"Potential position eliminations in each country are subject to local law and consultation requirements, which may extend this process into the second quarter of 2024 or beyond in certain countries. The charges that we expect to incur are subject to a number of assumptions, including local law requirements in various jurisdictions, and actual expenses may differ materially from the estimates disclosed above," it added.
This isn't the first time the Snapchat parent has laid off employees. In 2022, The company revealed plans to reduce headcount by 20% worldwide.
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