• by Colin Kirkland , February 5, 2024

Snap Inc, the parent company of social media app Snapchat, has announced a new round of layoffs that it says will affect 10% of its workforce, equating to about 530 employees. The company is restructuring after revenue declined in 2023 due to a weakening digital advertising market.

The company has not announced which specific sectors will be affected by the cuts, but according to The Information, some senior staff will be affected, including director of content Sam Corrao Clanon, Ding Zhou, vice president of content engineering, and Konstantinos Papamiltiadis, vice president of platform partnerships.

The decision follows two notable rounds of layoffs over the past year-and-a-half.

In 2022, Snap cut 20% of its workforce as a way to dramatically cut costs.

The company made smaller cuts in 2023 as it reorganized its product team and its enterprise services division, with a focus on making internal decision-making more efficient –– a reason the company has given for its current round of layoffs as well.

“We are reorganizing our team to reduce hierarchy and promote in-person collaboration,” a spokesperson told TechCrunch.

“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 filing said. “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.”

Snap is scheduled to report its Q4 2023 earnings on Tuesday of this week. After two quarters of declines, Snap's revenue rose in the third quarter of 2023, but due to a slowing ad market and Apple's tracking changes on iOS, the company warned investors about future volatility.

According to Insider Intelligence, the company currently possesses a 0.6% share of the global digital ad market and is set to make $4.12 billion in net worldwide ad revenue this year.