Snap, the parent company of Snapchat, has decided to cut its workforce by approximately 10%, joining the ranks of technology companies striving to cut costs. This move comes as Snap grapples with a decline in revenue, particularly in the digital advertising market. The announcement, made on Monday, reveals that the layoffs are part of the company's ongoing efforts to address financial challenges.

This reduction in staff follows significant downsizing in the previous year, where Snap disclosed plans to cut about 10% of its global full-time employees. This decision comes on the heels of earlier staff reductions, including a 20% cut in 2022 and a 3% reduction in 2023. As of the beginning of 2023, Snap had a workforce of approximately 5,300 employees.

While Snap did not specify which departments would be affected by the latest round of layoffs, the company emphasized in a statement to the Verge that these job cuts are crucial for "best positioning our business to execute on our highest priorities, and to ensure we have the capacity to invest incrementally to support our growth over time."

The impacted employees are expected to receive notifications soon, and Snap is reportedly allocating around $75 million for severance and related costs associated with the layoffs. Despite achieving revenue growth in Q3 2023, Snap has faced declining revenue for two consecutive quarters, encountering challenges in various products and services, including unsuccessful ventures like Snapchat AR glasses, a selfie drone, Spotlight, and the Snapchat Subscription service.

Looking forward, Snap's CEO Evan Spiegel has outlined ambitious goals for 2024, aiming to increase daily users by 17%, boost ad revenue by 20%, and double Snapchat Plus subscribers from the current 7 million. However, the company has struggled to meet these targets and has been operating at a loss.

Snap spokesperson Farrin Jay mentioned in an email to The Verge, "We are restructuring our team to foster more collaboration and less hierarchy. We are committed to supporting our departing team members and appreciate their hard work and contributions to Snap."

This wave of layoffs aligns with a broader trend in major tech companies, such as Meta and Google, that are navigating the delicate balance between implementing cost-cutting measures and maintaining competitiveness. Data from layoffs.fyi, a platform monitoring job reductions in the tech sector, indicates that the industry witnessed over 232,000 job cuts in 2023, with over 30,000 employees already laid off in January 2024, and further layoffs anticipated in the coming months.