Thomson Reuters
Snapchat is planning to significantly grow its ranks in New York City, the advertising and media capital of the world.
The Los Angeles-based startup has agreed to create 396 new jobs in the state of New York in exchange for tax breaks totaling up to $5 million from Empire State Development (ESD).
The incentive proposal from ESD (a state-owned organization) stipulates that Snapchat create the new jobs over the next five years and keep them through January 2027.
The deal was first reported by the New York Post and confirmed on Wednesday by Snapchat and ESD to Business Insider.
An ESD spokesperson told BI that Snapchat would be eligible to receive up to $5 million in tax refunds over the next decade under the Excelsior Jobs Program. Other tech and new media companies in New York have stuck similar deals, including BuzzFeed, Vice, and home security startup Canary.
Snapchat committing to hire nearly 400 more people in New York signals its longterm growth ambitions. The company recently expanded its multi-floor office space at its current headquarters in the former New York Times building near Times Square, according to employees who work there.
As of Wednesday, 161 people were listed as currently working at Snapchat in New York City on LinkedIn. A Snapchat spokesperson said the company currently employs more than 900 people globally but declined to confirm how many were based in New York City.
As a company that makes money from digital advertising, it makes sense for Snapchat to grow its New York presence. While most of the company's product designers and leadership work primarily out of its main headquarters in Los Angeles, the New York office is primarily staffed by people who work on ad deals, media partnerships, and original "Live Stories" content.