Snap just announced layoffs: find out more

Snap Inc (NYSE: SNAP) opened in the green this morning after announcing plans of lowering its headcount by some 10%.

How many employees will be let go?

The social media and tech company will let go about 529 of its employees in total.

Snap expects the layoff to result in up to $75 million in charges, as per its regulatory filing on Monday. Note that it’s not the only tech company to have announced a job cut this year.

Others, including Okta and even Microsoft Corp has recently lowered their headcounts to minimise costs. In fact, tech companies laid off a total of 24,000 workers in January.

Wall Street currently has a consensus “hold” rating on Snap stock after it more than doubled over the past four months.

Snap will report its Q4 earnings tomorrow

Snap has executed several rounds of job cuts since 2022. The last time it laid off employees was in November of 2023.

The social media giant is yet to comment on its announcement on Monday that arrives a week after Evan Spiegel – the chief executive of Snap Inc testified before the Senate on children’s safety.

Snap is scheduled to report its financial results for the fourth quarter on February 6^th (tomorrow). Consensus is for it to lose 16 cents a share versus 8 cents per share a year ago.

Ahead of its quarterly report, Benjamin Black – a Deutsche Bank analyst says $SNAP has upside to $19 per share as Invezz reported here.