Technology

Snapchat reduces workforce by 7% to reflect structural changes

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By Taruka Srivastav, Reporter

April 1, 2018 | 2 min read

Snapchat has made a 7% reduction in its workforce during March 2018 primarily in engineering and sales according to its regulatory filing.

Snapchat reduces 7% workforce to reflect structural changes

Snapchat reduces 7% workforce / Snapchat

The company said that the reduction in force was to align resources around its top strategic priorities and to reflect structural changes in its business.

Snapchat estimate to incur approximately $10m of pre-tax cash expenditures, substantially all of which will be severance costs.

As a result of the reduction in force, Snapchat further expect to recognize savings of approximately $25m in 2018 and $34m on an annualized basis related to salaries and payroll taxes.

Recently, Kylie Jenner and Maybelline had posted negative sentiment about the utility and effectiveness of Snapchat – two incidents that may have contributed to a decline in the market value of its parent company.

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