Snap is in the early stages of layoff planning, according to two people familiar with the plans.
The planned cuts come after the company recently Disappointing earnings results It did not forecast third-quarter earnings – the news that sent its stock prices to all-time lows. It’s currently unclear how many of Snap’s 6,000+ employees are, as managers across the company are still planning the full scope of cuts for their teams.
Ross Kaditz-Beck, a Snap spokesperson, declined to comment.
Snap’s business has recently taken a hit on two main fronts: The first is Apple’s introduction of The prompt “Ask the app not to track”which the majority of iPhone owners chose “yes” on, Which makes it more difficult for companies like Snap To effectively target their ads. The second factor is the broader economic downturn that has penalized share prices for Snap and other cash-burning companies in particular. Snap has made a profit in just one quarter since it went public in 2017.
The last time Snape laid off workers It was in 2018, when she was still reeling from the fallout from a poorly executed Snapchat redesign. Since then, its user base has grown to 347 million daily users, surpassing Twitter.
But the company has struggled to build significant advertising activity. and attempts to sell devices, Like a $230 drone, I did not go anywhere. in late may, CEO Evan Spiegel told employees That the company would sharply pull back from hiring and “find additional cost savings.”
Snap isn’t alone in needing cuts: Twitter, TikTok, and a host of other tech companies have announced layoffs or hiring pauses in recent months. Even Snap’s biggest and most profitable social media competitor, Meta, has slowed hiring and Warn employees of difficult times ahead.
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