Snap Inc, the parent company of Snapchat, has announced that it will be laying off over 500 employees, which amounts to approximately 10% of its global workforce. The majority of these job cuts are expected to take place in the first quarter of 2024. The company disclosed this information in a regulatory filing, where it also revealed that it anticipates charges of $55 million to $75 million in severance payouts and other related costs.

This move by Snap Inc is part of a larger trend of tech companies implementing cost-cutting measures. Other major tech firms, including Amazon, Google, and Microsoft, have also recently announced layoffs. Microsoft, for example, plans to shed 1,900 employees, while online retailer eBay is planning to cut 1,000 roles. Meta, the owner of social media brands Facebook and Instagram, also announced 10,000 redundancies last year.

Snap Inc's decision to downsize its workforce comes as the company faces challenges in the advertising industry. Like other social media companies, Snap has been affected by changes in Apple's privacy policy, which have made it more difficult for advertisers to track users. This has had a negative impact on Snap's revenue, with the company experiencing a decline in the first two quarters of last year and only 5% growth in its most recent quarter.

Snapchat, which boasts over 400 million daily active users, has also made efforts to streamline its operations in the past. In 2022, the company cut 20% of its workforce, amounting to 1,300 jobs, and discontinued several products. It has also recently laid off a small number of employees.

The news of Snap Inc's job cuts has had an impact on its stock price, with shares falling by 4% following the announcement. However, the company is set to report its fourth-quarter results on Tuesday, which will provide further insight into its financial performance.

It remains unclear at this stage how the job cuts will specifically affect Snap Inc's UK workforce, which currently employs around 500 staff. A spokesperson for the company stated that they are unable to provide information on whether any positions in the London offices will be affected. The spokesperson emphasized that the company is reorganizing its team to reduce hierarchy and promote in-person collaboration, while also expressing gratitude for the hard work and contributions of departing team members.