Snap Cuts 10% Of Its Global Employees, Follows The Wave Of Layoffs In The Technology Sector

JAKARTA - Snap announced on Monday February 5 that it will cut about 528 employees, or 10% of its total global employees. This is a sign that the wave of layoffs that occurred in 2023 could continue as companies struggle with economic uncertainty.

"In order to position our business well to implement our highest priority, and to ensure we have the capacity to invest in addition to support our growth over time, we have made difficult decisions to restructure our team," Snap said.

Snapchat, the parent company, estimates pre-tax costs in the range of 55 million US dollars (Rp867.6 billion) to 75 million US dollars (Rp1.1 trillion), consisting mainly of compensation for resignations and related costs, as well as other costs, of which 45 million (Rp709.9 billion) to 55 million US dollars are expected to be cash expenditures in the future.

Most of these costs are expected to occur during the first quarter of 2024.

Snap joins several other technology and media companies such as Amazon and Alphabet announced termination of employment in January.

Overall, nearly 32,000 workers have been laid off at 122 technology companies since the start of the year, according to tracking website Layoffs.fyi.

The technology sector has lost 168,032 jobs in 2023 and is the largest contributor to the number of layoffs in various industries, according to reports by Challenger, Gray, and Christmas earlier this month. Among them are more than 10,000 layoffs in Microsoft.