U.S.-based multinational tech firm Snap said Monday it will cut 10% of its global workforce, or around 500 employees.
"In order 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," the firm said in a filing for the U.S. Securities and Exchange Commission.
"As a result, we currently estimate that we will incur pre-tax charges in the range of $55 million to $75 million, 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," it added.
While the company has undertaken multiple layoffs since 2022, the latest round came in November when approximately 20 employees with product management titles were laid off.
In August 2022, the developer of instant messaging app Snapchat said it will start cutting 20% of its workforce that would affect more than 1,000 positions.
Dozens of companies in the U.S. technology sector have been cutting jobs since the final quarter of last year as they struggle with lower income and falling advertisement revenue.
Uber, Reddit, Disney, 3M, Amazon, Yahoo, Affirm, Zoom, Dell, IBM, Microsoft, Salesforce, PayPal and Google's parent company, Alphabet, have laid off workers by the thousands since the last quarter of 2023.