The photo-sharing platform, Snapchat will lay off its employees and is in the early stages of planning layoffs.
According to a report, the job cuts at Snap are coming after the company posted disastrous quarterly results (Q2) due to poor future forecasts.
According to the reports, “It’s currently unclear how many of Snap’s more than 6,000 employees will be laid off, as managers across the company are still planning the full scope of the cuts for their teams.”
“We face a number of very large and very sophisticated competitors (and) we’re seeing the overall advertising pie grow at a slower rate amid the macro headwinds,” CFO Derek Anderson had told investors.
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 frozen 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.
