Snap slashes 10% of its workforce

• Snap is planning another round of layoffs.
• In a regulatory filing dated Monday, Snap said it would slash 10% of its workforce.

Snap announced another round of layoffs on Monday, the latest for Snapchat's parent company.

The company said in a regulatory filing that it would cut 10% of its workforce. Snap employs approximately 5,300 workers, according to its last publicly reported headcount.

"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," Snap CFO Derek Andersen wrote.

The cuts come a day before Snap is scheduled to release its fourth-quarter earnings.

"We are reorganizing our team to reduce hierarchy and promote in-person collaboration," a Snap spokesperson told Business Insider. "We are focused on supporting our departing team members and we are very grateful for their hard work and many contributions to Snap."

Two workers at the social media company previously told Business Insider's Kali Hays that several dozen Snap staffers were let go on Friday and more cuts were expected.

Snap — which had laid off 20% of its staff in 2023 — is pushing its own augmented reality device that is now competing with Apple's Vision Pro and Meta's Quest devices. Meanwhile, BI previously reported the company has struggled to deal with shifts in the digital ad market and fierce competition from TikTok and Meta.

"We need our business to be strong enough and profitable enough to deliver the future of computing in augmented reality," CEO Evan Spiegel said in an optimistic internal memo last month.

The memo, viewed by Business Insider, was titled "Social media is dead. Long live Snapchat!"

Snap is the latest company to make cuts in what's been a brutal start to 2024 for tech workers.

In January alone, Google cut hundreds of workers from its core engineering and hardware teams while Amazon has also slashed its film and TV production arm, eliminating "several hundred" roles at Prime Video and MGM Studios. Messaging app Discord also laid off 17% of its workforce — approximately 170 people.

However, some analysts say the cuts in the tech industry aren't necessarily being felt across the broader labor market. According to data released by the Bureau of Labor Statistics, the rate of layoffs nationwide remains relatively low.