After introducing several AI tools, Snap snaps 10% of its workforce for a total of 32,500 layoffs in tech for 2024 alone،
Snap, the company that owns the AI-plagued messaging app Snapchat, is now laying off a tenth of its workforce (via Reuters).
The 10% job cut equates to about 530 employees, meaning the 2023 wave of tech layoffs is not yet over.
According to the report, Snapchat “has long struggled to turn its popularity among younger users into consistent revenue growth” and is therefore becoming increasingly difficult to compete with Meta's products like Instagram and Facebook.
“In order to best position our business to execute on our highest priorities and ensure we have the ability to incrementally invest to support our growth over time, we have made the difficult decision to restructure our team,” announced Snap.
According to a senior analyst at a research firm, Snap's layoff decision is an attempt “to gain goodwill with investors, who have rewarded its competitor for its cost-cutting measures.”
Snap joins other tech and media companies such as Amazon and Alphabet (Google's parent company) who have announced layoffs in January 2024.
So far, more than 32,000 workers have been laid off at more than 100 tech companies since the start of the year, according to one tracking site. Layoffs.for info. If the current pace (32,000/month) continues at full speed, this could lead to 384,000 layoffs in 2024. This is far more than what the technology sector experienced in 2023, when nearly 263,000 jobs were lost. removed, according to layoff statistics.
The AI controversy
The hype around AI is a fact, but not all AI tools garner the love and attention of users.
Snapchat's My AI feature caused issues for the messaging app after due to a glitch, the bot started posting photos and videos on its own, without the user interacting with it. 'application. As a result, 25,000 people asked Google every month how to get rid of My AI from Snapchat.
Meanwhile, in the UK, the same My AI feature sparked public opposition when a UK regulator issued a warning against the chatbot, citing potential risks to children's privacy. There have also been situations where the chatbot has given inappropriate advice, despite Snap's claims that it has strict moderation and protection features. An example of such advice is the chatbot that suggests ways to mask the smell of alcohol to a 15-year-old user.
Most recently, Snapchat added another weird AI tool, this time allowing users to create “custom Bitmoji animals.”
