(TheConservativeTimes.org) – On Monday, Snap, the social media company, announced that they would be laying off a substantial amount of their employees. This comes amidst a series of layoffs throughout the tech industry.
Snap, the makers of Snapchat, have said that they will be laying off about 500 employees, making up 10% of their staff. According to the company, the downsizing is to “promote in-person collaboration.” This isn’t the first cut we’ve seen from Snap. Their first major cut took place when 20% of their staff was laid off in August 2022.
A Snap spokesperson spoke out about the situation saying, “We are reorganizing our team to reduce hierarchy and promote in-person collaboration. We are focused on supporting our departing team members.” Many companies in the tech industry have shared the same sentiment, and in January 2024 alone over 20,000 jobs were cut throughout the technology sector.
Snap has made similar efforts as other technology companies such as Meta. The two social media companies – Meta and Snap- were seen among others at a hearing where the CEOs of the companies were questioned regarding concerns about child safety on their social media platforms.
There has been a lot of controversy, but investors are supporting the labor cuts within their businesses. Like Snap, Meta is also laying off a large chunk of their workers as they say they are focusing on a “year of efficiency.” Alphabet and Amazon also laid off employees as well as other technology companies. Zoom just recently announced that they would be cutting around 150 jobs within their businesses as well.
Snap’s shares have not done well based on the news dropping 3% at market opening on Monday.
Layoffs have been a popular decision in the industry because of the need to cut expenses, as well as downsizing to better optimize and be more efficient with fewer resources. Some have also suspected that it’s to make room for AI advancements.
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