The social media giant Snap, who operates Snapchat, has announced plans to cut “approximately” 10% of his staff.
The firm said in November 2023 that there were 5,000 employees, suggesting that about 500 people are facing surplus.
It comes the day before Snap reports its fourth quarter results – after reporting a net loss of $ 368 million (294 million £) in the last quarter in October 2023.
Snapchat said the measure would “ reduce the hierarchy and promote personal cooperation”.
“We are focused on supporting members of our outgoing team and we are very grateful for their tireless work and numerous contributions to Snap,” said a spokesman for the BBC.
Jasmine Enberg, chief social media analyst at Insider Intelligence, told the BBC that work breaks “ are not a good sign for Snap”’s business situation before his latest profit announcement on Tuesday.
She noted the latest results of rival Meta – which showed quarterly profits tripled from year to year, an increase in users, lower costs and higher advertising sales – as “ a difficult act to follow by Snap”.
“Snap is likely to try to collect a good will with investors, who reward his competitor for his cost reduction measures and his ongoing mantra “ do more with less” to 2024,” said Ms. Enberg.
She added that Snap advertising revenue has been “ slow to recover from slowing digital advertising”.
It is the second wave of massive cuts by the social media company, which fired about 20% of its workers in August 2022.
Snap has tried to expand into products beyond Snapchat, including experimentation with added reality glasses (AR), called Spectacles.
But the firm has not been able to find a massive market for other products, and then closed a division that provided AR services to business customers in 2023.
Recent job cuts come as companies, including Meta and Google, have faced how to balance cost reduction measures with the need to remain competitive