Social media company Snap Inc. (SNAP) announced on Monday that it will lay off 10% of its global workforce, or around 500 employees, in part to “promote in-person collaboration.” The company announced several rounds of layoffs since 2022, most recently in November when it laid off a small number of product employees. A Snap spokesperson said, “we are reorganizing our team to reduce hierarchy and promote in-person collaboration. We are focused on supporting our departing team members.”

In an SEC filing, Snap said, “We announced a plan to reduce our global headcount by approximately 10% of our 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.”

According to a regulatory filing, the company currently estimates to incur pre-tax charges in the range of $55 million to $75 million as a result of the layoffs, primarily consisting of severance and related costs, and other charges, of which $45 million to $55 million are expected to be future cash expenditures. The majority of these costs are expected to be incurred during the first quarter of 2024.

Snap Inc.’s shares fell nearly 3% in morning trading; stock remains below its debut price and well off its 2021 high of around $83.

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