The parent company of Snapchat, Snap is laying off 20 percent of the workforce which is nearly 1,280 employees.
According to a report in The Verge, The company has been planning these layoffs for several weeks. The layoffs which began on Wednesday will impact certain verticals more than others. Snap is currently employing more than 6,400 people.
The company’s Chief Business Officer Jeremi Gorman is resigning and he will be joining Netflix. According to the reports, The team has been working on the mini-apps and games inside Snapchat which will be severely impacted.
Further, another Snap team that will be affected by the layoffs is the hardware division. The hardware division is majorly responsible for its AR Spectacles glasses and the Pixy camera drone.
In May, Snap announced to slow down hiring this year. Like many tech companies, Snap continues to face rising inflation and interest rates, supply chain shortages and labour disruptions, platform policy changes, the impact of the war in Ukraine, and more.
Snap, the parent company of Snapchat, suffered nearly $10 billion loss and its shares hit a new 52-week low over disappointing quarterly results last month. The company reported a net loss of $422 million compared to $152 million in the prior year as it “substantially” reduced hiring.
Snap has joined companies like Microsoft, Twitter, TikTok, Meta, and Google who have either laid off employees or freezed new hirings.
The development of either layoff or hiring slowdown comes after IT companies, crypto exchanges, and financial firms cut out jobs and slow down the hiring process due to slow global economic growth caused by higher interest rates, rising inflation, and an energy crisis in Europe.
