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Industry Layoffs: Snap Axes 500 Jobs • iPhone in Canada Blog

Snapchat’s parent company, Snap, has recently announced a decision to reduce its global workforce by 10%, affecting about 500 employees. This move comes as part of the company’s strategy to promote in-person collaboration, with the aim of streamlining its operations and reducing hierarchy. Here’s what you need to know about this development in the tech industry:

– The decision has led to a nearly 3% decline in Snap’s shares during morning trading.
– This isn’t the first time Snap has implemented staff reductions, having executed multiple rounds since 2022.
– The company expects to incur charges ranging from $55 million to $75 million due to this workforce reduction.
– Snap joins other tech companies like Okta and Zoom, which have also made staff reductions in 2024.
– Investors have generally supported tech companies’ efforts to streamline their workforce, as seen with Meta’s successful implementation of a “year of efficiency.”
– Despite facing challenges, Snap managed to break a streak of revenue declines in its most recent quarter and initiated a $500 million share buyback program.

It’s clear that despite these efforts, Snap’s stock remains below its debut price and significantly off its 2021 high. Stay tuned for more updates on how these developments will impact the company’s future performance.

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