Snapchat Parent Company Lays Off Dozens of Workers, More Expected to Follow

Snapchat's owner, Snap, announced that it has laid off at least dozens of employees on Friday with more to follow this coming week.

Confirmation of more job cuts are expected to drop before Snap released its fourth quarter financial results on Tuesday, Feb. 6, two people familiar with the company told Business Insider.

The news came amid Snapchat's struggle to keep up with its competitors like Meta after suffering advertising losses in the past year.

Snap has already eliminated several roles, including shutting down its entire AR division with 170 employees last September, as a cost-cutting measure.

The company's revenue only increased by 5% on a year-to-year basis in the third quarter, nowhere near Snap's goals for its social media platform.

Snap has yet to comment on the reports.

Snap Employees Put on Performance Review

Fears of more layoffs have been going around in the company for quite some time, sources told BI.

Snap has been reported to put many of its workers on performance review and even changed its bonus package system.

Several leadership changes have also been made in the past months, including 20 product managers being let go, in addition to more demanding in-office work days.

It comes as no surprise that employee morale has been "extremely low" for the past quarters.

Social Media Layoffs Surge in 2024

Snap was not the only social media platform suffering layoffs at the start of 2024 as more tech companies expect several job cuts in the following weeks.

Meta already hinted that it would be doing more layoffs in the coming days amid CEO Mark Zuckerberg calling 2024 the "Year of Efficiency."

TikTok and YouTube conducted layoffs in mid-January, affecting nearly 1,000 employees combined.