Snap, following Google and Amazon, cuts 10% of its workforce in layoffs this year.

January 2024 brought a series of technology layoffs, and now it seems that companies have no intention of slowing down. Snap Inc is the latest tech giant to announce layoffs.

The company behind the popular social media Snapchat is laying off about 10 percent of its workforce, a total of about 529 employees. This is not the first time that the company has reduced its staff. it previously laid off about 20 percent of its workforce in 2022 and about 3 percent last year.

This decision follows the company’s reported struggles with advertising revenue. In addition, its other projects, such as the Snapchat Plus subscription service, and hardware products such as the Pixy drone and Snap Spectacles failed to make a mark in the market.

As stated in its SEC filing, Snap emphasizes that this move was necessary for its future growth prospects.

“To best position our business to deliver on our highest priorities and to ensure we can make incremental investments to support our growth over time, we have made the difficult decision to restructure our team,” the company said in the filing. .

It added: “As a result, we currently estimate that we will incur pre-tax charges of between $55 million and $75 million, consisting primarily of severance and related costs and other charges, of which $45 million to $55 million are expected to be future cash expenditures.”

This comes after companies including Google, Amazon and eBay started layoffs last month in January. In particular, Google has initiated a layoff that affects hundreds of employees in various teams. This included staff from its Voice Assistant unit, as well as hundreds of staff from the hardware team responsible for the Pixel, Nest and Fitbit. In addition, Google made workforce changes to its augmented reality team and central engineering team.

Amazon also announced that it is also cutting staff, laying off hundreds of employees at its Prime Video and MGM Studios divisions.