Bad news for (again) explode. The parent company of the social network Snapchat announced this Monday that it will lay off 10% of its global workforce, affecting approximately 528 employees.
The American company, founded in 2011, expects to allocate a budget between 55 and 75 million dollars. compensation Costs related to this work reduction, according to the report submitted to regulators. It is not yet known which departments will be affected.
Snap has had a few tough years. Its shares are down 80% in 2022. Then the management preferred this. dismissal 20 percent of its employees. It cut another 3% in 2023 and managed to revalue itself by over 83%. However, it recorded its first decline in April. income history due to slowdown in advertising.
Snap also has some reason to be optimistic. In the final stages of the year, the company was able to expand its base. users Tenth place, reaching an average of 750 million monthly sales social network or the world’s most popular digital platform. So far this year, its shares have increased in value by 3.78%.
Founded and managed by the company Evan Spiegel He tried to diversify his business but without much success. For example, augmented reality glasses were not even marketed. They plan to increase per capita income by increasing the number of daily users by 17% by 2024. advert It increased by 20% and Snapchat Plus subscribers doubled. Time will tell whether they will be successful or not.
The layoffs are the latest in a wave of workforce losses sweeping the U.S. tech industry. Last month alone, companies Google, instagram, Amazon, Twitch, Microsoft, tiktokPayPal, ConflicteBay and Riot Games announced cuts accumulating in 2023. In total, more than 32,500 employees in 130 companies in the sector were laid off.