Snap Inc. will eliminate 1,000 jobs as part of a plan to reduce annual costs by 4.7 billion Norwegian kroner. The decision affects employees across departments as the company aims to improve profitability. Chief Executive Officer Evan Spiegel confirmed the cuts in a memo to staff on Wednesday.
The company stated the restructuring will begin immediately, with affected workers notified within weeks. Snap’s revenue growth has slowed in recent quarters, prompting the need for cost adjustments. The annual savings target represents about 15% of its current operating expenses.
Snap’s shares fell 3.2% in after-hours trading following the announcement. Investors had anticipated cost-cutting measures after the company reported lower-than-expected earnings last month. The job cuts follow similar moves by other tech firms facing economic pressures.
Affected employees will receive severance packages and career transition support. The company did not specify which departments would face the largest reductions. Spiegel emphasized the changes are necessary to ensure long-term stability.
The move comes as Snap competes with larger platforms like Meta and TikTok for digital advertising revenue. The cost-cutting strategy aims to protect its market position amid rising competition.
Source: e24.no