San Francisco, Aug 9 : Joining the ranks of Big Tech companies who have laid off employees, the photo-sharing platform Snapchat is preparing to dismiss employees and is in the beginning stages of making plans to lay off employees. According to an article in The Verge, the job reductions at Snap come after the company had a terrible Q2 results (Q2) with a poor forecasts for the future.
“It’s currently not known what percentage of Snap’s 66,000 employees will lose their jobs since Snap’s managers are still working out the full range of the layoffs of their staff,” the report said late on Monday.
The company has yet to respond to the report.
Snap joins other companies like Microsoft, Twitter, TikTok, Meta and Google who have either laid off workers or frozen new hirings in the wake of the global economic slump.
Snap the parent company of Snapchat has suffered a $10 billion in losses, and its shares fell to an all-time low of 52 weeks following its disappointing quarter-end results.
The company posted an operating loss of $422 million, compared to $152 million in the previous year when it “substantially” reduced the number of employees.
“We have a lot of extremely large and advanced rivals (and) we’re witnessing the total advertising pie expand in a slower manner due to macro headwinds” CFO Derek Anderson has stated to investors.
In May, Snap announced to slow the hiring process this year.
CEO Evan Spiegel told employees that the company is planning to recruit 500 employees in the coming year, as opposed to 2,000 employees it hired in the last twelve months, after telling investors that the company’s revenues would not grow at the rate they expected.
Similar to many companies in the tech industry, Snap continues to face increasing inflation and interest rates supply chain shortages and labour disruptions and platform policy changes and the effects of the conflict in Ukraine and much more.
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