Snap Inc., Snapchat’s parent company, has announced a staff reduction in an effort to streamline operations and create a more agile organisational structure.
A Form 8-K filing with the US Securities and Exchange Commission revealed the decision, which details plans to cut the global headcount of Snapchat’s parent company’s full-time employees by about 10%.
Revealed on February 5, 2024, the reorganisation effort exemplifies Snap Inc.’s goal of directing its assets towards its most important objectives and setting itself up for long-term success and innovation in the ever-changing digital market. The decision is made in response to the evolving market conditions and the company’s strategic need to improve operational efficiency and scale.
Snap Inc. expects to pay between $55 million and $75 million in pre-tax charges due to restructuring-related expenses, severance, and other factors, as stated in the filing. The bulk of these costs are expected to come to fruition in the first quarter of 2024, with an estimated $45 million to $55 million representing future cash expenditures.
Read also: Snap announces layoffs amidst competition, market challenges
Why workers were laid off
Snap Inc.’s employee reduction initiative is subject to local law requirements and consultation processes in each country where the company operates. This reflects the proactive approach the company takes to optimising resources. To be sure everything is in order according to the rules and regulations, the execution schedule might end up running into the second quarter of 2024 or later in some places.
Along with the filing, Snap Inc. reaffirmed its commitment to maintaining the highest corporate governance and stakeholder engagement standards, highlighting its emphasis on open and honest communication and accountability. The company stressed that the charges related to the restructuring are based on several assumptions and might end up being different from the estimated figures provided in the filing.
Snap Inc.’s decision to reduce its workforce demonstrates its firm commitment to creating value in the long run and maintaining its position as a world leader in digital media and technology. Snap Inc. aims to strengthen its position for future success by improving its competitive agility through reorganising its resources and focusing on strategic growth areas.
Along with the workforce reduction initiative, Snap Inc. reaffirmed its goal of fostering an environment that encourages innovation and collaboration. The company emphasised the significance of developing and retaining talent to drive long-term business success and operational excellence. As the digital ecosystem continues to evolve, the company’s primary goal is to provide its worldwide user base with simple and straightforward experiences.
Snapchat in Africa
The biggest concentration of Snapchat users on the African continent was in Northern Africa. The social media site had nearly 29 million users as of July 2022. After that, about 11 million people lived in Western Africa, while six million lived in Southern Africa.
A survey that looked at the distribution of users of instant messaging applications in South Africa by province in 2021 found that 36% of Snapchat users were from Gauteng. North West had about 25% of all users, which was the second-highest percentage.
There are about 12 million Snapchat users in Nigeria. Among them, women make up 51.5% and men 46.7%. In Nigeria, 10% of internet-enabled adults use Snapchat.
The number of daily active users on Snapchat increased by over 50 million from the same quarter in 2021 to 347 million in Q2 2022, according to Statista. Additionally, Snapchat’s total advertising reach of over 617 million people is illuminated by Data Reportal. Because of this, it is now one of the world’s top ten social networks. Put another way, it’s a platform that marketers can’t pass up. This is true all over the world, including Africa.