Layoffs announced as part of restructuring within organizations
More employers across the world are announcing a fresh round of job cuts this year as part of their efforts to restructure their workforce.
Tech company Snap Inc. announced in a regulatory filing this week that it is cutting approximately 10% of its global full-time employees.
"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," Snap said in its filing.
It also told news outlets that restructure plan aims to promote in-person work.
"We are reorganizing our team to reduce hierarchy and promote in-person collaboration," a Snap spokesperson told CNN. "We are focused on supporting our departing team members and we are very grateful for their hard work and many contributions to Snap."
The layoffs will impact around 500 employees of the tech firm, according to reports, and will incur charges between $55 million and $75 million in the first quarter due to severance and related costs.
"Potential position eliminations in each country are subject to local law and consultation requirements, which may extend this process into the second quarter of 2024 or beyond in certain countries," the tech firm stated.
Estée Lauder layoffs
Meanwhile, cosmetics company Estée Lauder said it is also cutting between three and five per cent of its positions as part of a restructuring program aimed at driving profits.
"This reduction takes into account the elimination of some positions as well as retraining and redeployment of certain employees in select areas," the company said in its latest fiscal results report.
It added that the restructuring program will begin during the company's fiscal 2024 third quarter, with its focus including the reorganization and rightsizing of certain areas in the company.
Once fully implemented, the company said it is expecting restructuring costs to reach up to $700 million before taxes, but it is also expected to benefit its annual gross.
"The program is expected to yield annual gross benefits of between $350 million and $500 million, before taxes, of which a portion is expected to be reinvested in consumer facing areas to drive sustainable, profitable growth," it noted.
"Company now expects to drive incremental operating profit through the initiatives in the Profit Recovery Plan of $1.1 billion to $1.4 billion, including net benefits from the restructuring program."
Snap and Estée Lauder add to the growing number of firms announcing job cuts to their global workforce, including the United Parcel Service, eBay, Riot Games, among others.
