Snap Reportedly Plans to Lay Off Employees, Managers Discussing Job Cuts for Their Teams

Snap CEO Evan Spiegel told employees in a memo in May that the company will slow hiring for this year.

By Agencies | Updated: 9 August 2022 10:00 IST

Snap Reportedly Plans to Lay Off Employees, Managers Discussing Job Cuts for Their Teams

Snap reported that its loss in the recently ended quarter nearly tripled

Highlights

Snap will slow hiring for this year
Snap painted a grim picture of the effects of a weakening economy
Snapchat's owner plans to "substantially" slow recruitment after bleak re

Snap is in early stages of planning layoffs, the Verge reported on Monday, citing people familiar with the plans.

The scope of the job cuts is currently unclear as managers are still planning it for their teams, the report said, adding that the Snapchat-owner has more than 6,000 employees.

Snap declined to comment when contacted by Reuters.

Samsung Wins Patent for a Tri-Fold Smartphone With Specialised Barrier Layer for Improved Durability

The development comes as technology companies, crypto exchanges, and financial firms cut jobs and slow hiring as global economic growth slows due to higher interest rates, red-hot inflation and an energy crisis in Europe.

Facebook-owner Meta Platforms cut plans to hire engineers by at least 30 percent this year, CEO Mark Zuckerberg had told employees on June, and he warned them to brace for a deep economic downturn.

Snap CEO Evan Spiegel also told employees in a memo in May that the company will slow hiring for this year and laid out a broad slate of problems.

Snapchat Shared Stories Launched to Improve Collaboration

Last month, the company painted a grim picture of the effects of a weakening economy on social media and declined to make a forecast in "incredibly challenging" conditions, sending its shares down 25 percent.

It was reported last month that the Snapchat's owner plans to "substantially" slow recruitment after bleak results wiped 25 percent off the stock price of the tech firm, which is facing difficulties on several fronts.

Snap reported that its loss in the recently ended quarter nearly tripled to $422 million (roughly Rs. 3,371 crore) despite revenue increasing 13 percent under conditions "more challenging" than expected.

"We are not satisfied with the results we are delivering, regardless of the current headwinds," California-based Snap said in a letter to investors.

The firm pointed to a punishing confluence of increased competition, slowing growth of its revenue, "upended" advertising industry standards and macroeconomic woes.

Snap share price was around $12 (roughly Rs. 950) in after-hours trading in the wake of the earnings report.

What should you make of Realme's three new offerings? We discuss them on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.