Snap, the parent company of Snapchat, will lay off 10% of its employees worldwide

A new wave of layoffs in technology. Snap, which owns the social network Snapchat, announced on Monday that it was cutting about 500 employees from its workforce, or 10% of its workforce worldwide, Reuters reports.

“To best position our business to meet our highest priority tasks and ensure our ability to make incremental investments to support our growth over time, we’ve made the difficult decision to restructure our team,” Snap said. The group did not specify which departments would be affected by the layoffs.

The company has already laid off 20% of its employees in 2022 and 3% in 2023, according to The Verge. The social network, popular with young people in France, has often struggled to find a place against its competitors TikTok or Instagram. The company has also faced, like other tech groups, slumps in advertising revenue.

Serial layoffs

“These layoffs do not bode well for the state of Snap’s business,” Jasmine Enberg, principal analyst at research firm Insider Intelligence, told Reuters. “Snap is likely trying to win goodwill from investors who have rewarded its competitor for cost-cutting measures. »

In contrast, many companies in the technology sector announced significant waves of layoffs in an increasingly uncertain economic context. In January, Amazon announced several thousand job cuts across several of its services, notably Audible audiobooks and its online streaming service Twitch, Reuters reports.

As for Alphabet, Google’s parent company, layoffs also affect hundreds of employees. Microsoft and eBay are also planning cuts.

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