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Snap sheds 500 jobs to boost “in-person collaboration”

Snap's banner on the New York Stock Exchange, marking its IPO

Snap has revealed plans to reduce its headcount by 10 percent, affecting around 500 employees.

The company said it’s to “promote in-person collaboration.”

The decision led to an initial three percent drop in its stock price, although it slightly recovered to close 1.8 percent lower. 

This move marks another in a series of layoffs by the company, following a previous reduction in November targeting some product team members.

The expected financial impact of these layoffs is projected to be between $55 million and $75 million.

This follows a significant reduction in August 2022, when Snap cut 20 percent of its workforce and reorganized its business.

The company is also focusing on providing support for those employees who will be leaving. 

This is part of a broader trend in the technology sector, which has seen substantial job cuts.

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The company is also focusing on providing support for those employees who will be leaving. 

This is part of a broader trend in the technology sector, which has seen substantial job cuts.

Around 24,000 tech roles were eliminated in January 2024 alone, including layoffs at companies like Okta and Zoom.

Snap CEO Evan Spiegel recently testified before the Senate Judiciary Committee, one of several executives to face scrutiny over the impact of social media on youth.

The tech industry has seen a wave of downsizing, with investors often viewing these measures favorably as companies seek efficiency. 

Meta and other tech giants like Amazon and Alphabet have shed their workforces significantly. 

Despite the challenges, Snap reported a break in its revenue decline in the latest quarter and launched a $500 million share buyback program. 

However, Snap's stock price remains below its initial offering level and significantly lower than its peak in 2021.

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