Snapchat announces to layoff 10% workforce

Adding to the list of company layoffs, Snapchat in its regulatory filing has announced it will be dismissing 10% of its workforce, approximately 530 employees.

The majority of the positions are anticipated to be eliminated in the first quarter, Sky News reported.

The filing also revealed that the company has to pay up to $75 million in severance benefits and other related costs.

The California-based company has more than 5,300 employees worldwide, with about 500 of those working in the United Kingdom (UK).

According to a Snap spokesperson, it is not clear whether the downsizing will affect employees in the UK.

"We are reorganising our team to reduce hierarchy and promote in-person collaboration. We are concentrating on assisting our leaving team members, and we appreciate all of their efforts and numerous contributions to Snap."

According to Demand Sage, 406 million people use Snapchat daily on average.

Other tech companies to announce job losses recently include Microsoft, which plans to shed 1,900 employees, and online retailer eBay, which is planning to cut 1,000 roles.

Meta, the owner of social media brands Facebook and Instagram, also announced 10,000 redundancies last year.

Shares in Snap fell 4% following the announcement on Monday.

The firm is due to reveal its fourth-quarter results on Tuesday.