Snap will lay off 20% of employees, report says

Co-founder and CEO of Snap Inc. Evan Spiegel attends the Viva Technology convention devoted to innovation and startups, on the Porte de Versailles exhibition heart in Paris, France June 17, 2022.

Benoit Tessier | Reuters

Snap is laying off 20% of its workforce, which equates to over 1,000 staff, in line with a report revealed Tuesday by the Verge.

The layoffs will start on Wednesday, the report mentioned, and will have an effect on sure departments together with {hardware} and developer merchandise.

Snap has had a troublesome yr, with the corporate most lately lacking on each income and earnings within the second quarter. In its Q2 investor letter on July 21, Snap mentioned it might not present steerage for its present quarter and mentioned “forward-looking visibility remains incredibly challenging.” 

Snap shares dropped greater than 25% on the day it reported its second quarter earnings. The firm’s disappointing outcomes kickstarted a wave of social media corporations reporting poor outcomes, citing a weak internet marketing market, amongst different causes.

Facebook-parent Meta additionally missed analysts’ estimates for its second quarter, as did Pinterest.

The social media corporations blamed some of their issues on companies chopping again on digital promoting as a result of of the weak financial system. Additionally, these corporations have mentioned {that a} 2021 privateness replace to Apple’s iOS has made it harder for them to trace customers, thus negatively impacting their on-line advert items.

Earlier in August, Snap scrapped the event of its Pixy flying digital camera drone, first introduced in April.

Snap declined to touch upon the report.

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