Snapchat plans to cut global workforce by 10%, slashing 500 jobs

Feb. 5 (UPI) -- Snap Inc. plans to reduce its global workforce by 10%, according to a filing with the U.S. Securities and Exchange Commission Monday.

The parent company of social media platform Snapchat wrote in the filing that the cuts were meant to ensure the company is in the best position "to execute our highest priorities and to ensure we have the capacity to invest incrementally to support our growth over time."

The cuts are expected to total nearly 500 employees in a move the company said would "promote in-person collaboration."

"We are reorganizing our team to reduce hierarchy and promote in-person collaboration. We are focused on supporting our departing team members," Snap told CNBC.

In the SEC filing, Snap said that because of the job cuts, the company is expecting to spend up to $75 million in severance-related costs associated with the terminations with those costs expected to occur in the first quarter of this year.

"Potential position eliminations in each country are subject to local law and consultation requirements, which may extend this process into the second quarter of 2024 or beyond in certain countries," the company stated.

In August 2022 Snap cut 20% of its workforce, at the time representing more than 6,400 jobs -- CEO Evan Spiegel said "the extent of this reduction should substantially reduce the risk of ever having to do this again, while balancing our desire to invest in our long term future and reaccelerate our revenue growth."

This comes as the company continue to remain under public and congressional scrutiny -- along with other tech giants such as Meta -- after Spiegel testified at a U.S. Senate Judiciary Committee hearing along with other tech leaders such as Mark Zuckerberg.