Snap to lay off about 16% of staff

12:15

Snap Inc, the parent company of Snapchat, has announced plans to reduce its global workforce by approximately 16%, according to reports released on Wednesday. The decision comes as the company faces increasing pressure from investors and a more competitive digital advertising market.

The move follows calls from activist investors, including Irenic Capital Management, urging the company to streamline operations and improve overall financial performance. Like many smaller social media firms, Snap has been affected by fluctuations in advertising spending, especially during periods of economic and geopolitical uncertainty.

Industry analysts note that companies such as Snap Inc are facing stronger competition from larger technology groups like Meta Platforms Inc and Alphabet Inc, which continue to attract a larger share of global advertising budgets due to their extensive user bases and diversified services.

Snap currently employs several thousand people worldwide, and this reduction is part of a broader trend of cost-cutting measures across the technology sector. In recent years, many tech firms have adjusted their workforce levels to align with slowing growth and changing market conditions.

The company stated that the restructuring aims to focus on key priorities and improve long-term efficiency.