Snap Inc, the parent company of Snapchat, has announced it will lay off 10% of its workforce, or about 530 employees, in the first quarter of 2024. The move comes as the social media giant faces increasing competition and regulatory pressure in the tech sector.

The company did not disclose which offices or regions would be affected by the job cuts, leaving its UK staff in limbo. Snap has about 500 employees in London, where it established its international headquarters in 2017. Sources said the company was unable to confirm if any UK jobs would be lost.

The news sent Snap’s share price tumbling by 4% on Monday, as investors worried about the company’s profitability and growth prospects. Snap reported a net loss of $200 million in the third quarter of 2023, despite having over 400 million daily active users.

The company said the job cuts were part of its efforts to “reduce hierarchy and promote in-person collaboration” among its teams. A spokeswoman said the company was “grateful for the contributions” of the affected employees and would “support them through this transition”.

Snap is not the only tech company to resort to layoffs in recent times. In 2023, several tech giants, including Google, Facebook, Twitter, and Uber, announced plans to reduce their headcounts amid the Covid-19 pandemic, antitrust probes, and changing consumer preferences. Analysts expect more job cuts in the tech sector in 2024, as the industry faces an uncertain future.

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