A massive social media company now lays off 500 employees to “promote in-person collaboration,” sources report.
Social media company Snap said Monday that it will lay off 10% of its global workforce, or around 500 employees, in part to “promote in-person collaboration.”
The Snapchat maker’s shares fell nearly 3% in morning trading.
The company has executed multiple rounds of layoffs since 2022, most recently in November, when it trimmed a small number of product employees, reports CNBC.
Snap expects it will incur charges ranging from $55 million to $75 million, according to a regulatory filing.
The company’s last major round of cuts was in August 2022, when it laid off 20% of staff and restructured its business lines.
“We are reorganizing our team to reduce hierarchy and promote in-person collaboration.
We are focused on supporting our departing team members,” a Snap spokesperson told CNBC.
The social media platform is the latest tech company to continue cutting in 2024. Nearly 24,000 tech workers lost their jobs in January alone.
Already this month, cybersecurity and identity company Okta and Zoom have laid off staff.
Snap CEO Evan Spiegel testified before the Senate Judiciary Committee last week, one of several social media executives to face scrutiny over the damage their platforms caused young people.
Snap stock remains below its debut price and well off its 2021 high of around $83.
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Also Read: Another Massive Bank is Now Laying Off 600 Employees
Other Economy News Today
A massive shoe retailer is now closing locations after store employees said the business was “priced out” after a rent increase.
The Journeys in the Arnot Mall will be closing on January 20 after the company announced plans to shutter 100 stores, reports The-Sun.
Select staff will be transferred to other Journeys locations.
The store is located in Horseheads, which is about two hours south of Syracuse.
The manager said the closure was disappointing and the employees are like family.
There is no closing sale because all the merchandise will be transferred to nearby locations.
This comes after Genesco, which owns the shoe store, announced it would close 100 stores and move away from malls.
In May, it was initially estimated that only 60 locations would close after net sales dipped 7% due largely to a 13% decrease at Journeys.
Genesco expects to save up to $40 million from the closures, reports Retail Dive.
Now the company plans to shift the store’s presence away from malls.
“We still have work to do, but we are so far encouraged by the early reads and believe this initiative will represent a key element in Journeys’ growth moving forward,” said Genesco CEO Mimi Vaughn during an earnings call.
The JCPenney in the Shenango Valley Mall also fought to stay open for years but is set to close in the next few months.
The two businesses had been in a legal dispute for years because the mall wanted to evict the retailer and renovate the property, which is located in Pennsylvania.
JCPenney sued the mall and the court eventually ruled in favor of Butterfli Holdings LLC, the owners of the mall.
It was the last anchor store in the mall after Macy’s and Sears closed in 2017.
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Also Read: A US Company Now Declares An Unexpected Bankruptcy
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