Joining the league of Big Tech companies laying off employees, photo-sharing platform Snapchat is set to lay off employees and is in the early stages of planning layoffs. According to a report in The Verge, job cuts at Snap are taking place after the company posted disastrous quarterly results (second quarter) amid poor future forecasts.
“It is unclear whether Snap’s more than 6,000 employees will be laid off, as the company’s managers are still planning full cuts for their teams,” the report said late Monday.
The Company is Yet to Comment on the Report
Snap joins companies such as Microsoft, Twitter, TikTok, Meta and Google that have either laid off staff or stopped new hires amid the global economic slowdown.
Snap, the parent company of Snapchat, lost nearly $10 billion and its shares hit a 52-week low last month compared to disappointing quarterly results.
The Company Has Reported A Net Loss of 42.2 Crores As Compared to 15.2 Crores in the Previous Year
“We are facing a number of large and very sophisticated competitors [and] we are seeing the overall advertising pie growing at a slower rate amid macro headwinds,” CFO Derek Anderson told investors.
In May, Snap Announced It Was Slowing Down Recruitment This Year
CEO Evan Spiegel told employees that the company plans to hire 500 people this year, compared with 2,000 in the past 12 months, after warning investors that its revenue could grow faster than expected. will not grow.
Like many tech companies, Snap is facing rising inflation and interest rates, supply chain constraints and labor disruptions, platform policy changes, the effects of the war in Ukraine, and more.