Snap Inc. is facing a wave of layoffs, reportedly affecting more than 20% of its employees. The company confirmed the job cuts, stating that they were necessary to redirect resources towards its highest priorities. Snap expressed gratitude for the contributions of the departing team members and acknowledged their hard work.
While the exact impact on the UK workforce remains unclear, Snap's annual report indicates that over 500 employees are based in the country. The layoffs come as the company grapples with slowing growth and intense competition in the social media landscape.
Snap's previous efforts to diversify its product offerings, such as its AR services for business customers, have not yielded significant success, leading to the closure of that division in 2023. These challenges are compounded by the broader economic slowdown, which has prompted other tech giants like Meta and Google to implement cost-cutting measures.
Industry-wide layoffs in the tech sector have surged, with over 232,000 job cuts recorded in 2023, according to layoffs.fyi. Snap's CEO, Evan Spiegel, recently faced scrutiny at a US Senate hearing regarding child safety online, alongside executives from other social media companies.
In its statement, Snap emphasized the need to restructure its team to align with strategic priorities and support long-term growth aspirations. The company's filing highlights that the layoffs will adhere to local laws and consultation requirements in each affected country, potentially extending the process.