Snap Inc, the owner of social media app Snapchat is set to axe 10% of its workforce as part of a 'team restructure' as the firm seeks to cut overheads amid growing losses.
That would amount to more than 500 jobs based on the total global headcount of 5,288 disclosed in its most recent annual report.
In a statement the California-based company said: "In order to best position our business to execute on our highest priorities, and to ensure we have the capacity to invest incrementally to support our growth over time, we have made the difficult decision to restructure our team."
A spokesperson added: "We are reorganizing our team to reduce hierarchy and promote in-person collaboration. We are focused on supporting our departing team members and we are very grateful for their hard work and many contributions to Snap."
Snap Inc posted a loss of $368 million in the three months to end September, an increase on the previous year, as the company lamented that "competition for advertising dollars has increased and demand growth on our advertising platform has slowed.
"We expect to continue to experience increased competition, which may result in reduced advertising demand, and could adversely affect our revenue growth, pricing, business, financial condition, and results of operations.
The company added: "Our revenue, particularly in North America, has further been impacted by platform policy changes and restrictions that affected our targeting, measurement, and optimization capabilities" which "in the future is likely to continue to result in reduced advertising revenue."
Snap said the cuts would cost in the range of $55 million to $75 million, primarily in connection to severance payments.
Snap has more than 500 staff in the UK, according to its most recent annual report, implying more than 50 jobs are set to go. A company spokesperson was unable to confirm how many roles in the UK would be impacted by the cutbacks.
It follows an earlier round of job cuts in 2022 in which 20% of the company's staff were let go.
Snap shares fell 1.7% to $16.76 after markets opened on Wall Street.
