Snap acknowledged it laid off about 7% of its workforce this month, primarily in engineering and sales, as it responded to what it vaguely describes as “structural changes” in its business.
The company said it will incur $10 million in expenses associated with the job cuts, though it expects to realize a savings of about $25 million this year in reduced payroll and taxes.
“The reduction in force is to align resources around our top strategic priorities and to reflect structural changes in our business,” Snap said in a regulatory filing.
Snap also said it plans to break lease contracts as it centralizes operations in Santa Monica, and expects to incur losses of $25 to $45 million as a result.
The company dropped the news late Friday in a filing with the Securities and Exchange Commission. A spokesperson could not immediately be reached for comment, however earlier this week Snap confirmed it had laid off about 100 people.
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