Snap (SNAP) shares edged just over 1% higher Monday morning after the company announced it plans to reduce its global full-time employee headcount by approximately 10%, or 529 employees.
It is the latest layoff announcement for the tech company, which has conducted multiple rounds of layoffs since 2022. It most recently let go of a small number of product employees in November.
Snap said it made the decision to position its business in the best way to execute on its highest priorities and ensure it can invest and support its growth over time.
The layoffs are estimated to result in a pre-tax charge in the range of $55 million to $75 million, primarily consisting of severance and related costs and other charges, of which $45 million to $55 million are expected to be future cash expenditures. The majority of the costs are expected to be incurred during the first quarter of 2024.
Back in August, Snap laid off 20% of its employees and scrapped several projects.