Snap has now followed in the footsteps of many large companies. The parent company of Snapchat now dismisses 10% of its employees. As of the end of the third quarter of 2023, the company reported a total of 5,367 employees, so the layoffs should touch approximately 540 people.
Snap discussed the decision in a filing with the Securities and Exchange Commission (SEC) and said the layoffs would best position the company to realize its highest priorities and will allow that he will have capacity for investment in the future.
The layoffs come just one day before Snap reports its fourth-quarter 2023 earnings. According to Variety, the company performed quite well in the third quarter, beating Wall Street expectations by about five percent. It’s a tactical move because it’s not popular when news of layoffs comes after the company boasts higher profits.
It’s another wave of layoffs in a row, with Snap firing 20 product managers in November. And in 2022 it was even about more than 1,300 employees.