SANTA MONICO, Calif. — Layoffs are expected to affect 20% of Snap’s workforce beginning Wednesday, according to a report published Tuesday by The Verge.
Santa Monica, California-based Snap said in May that it would slow hiring and look for ways to cut costs after its stock price lost nearly 80% of its value since the start of 2022, the tech-centric news outlet reported.
The company then delivered dismal second-quarter earnings and said it would forego providing third-quarter results, noting “forward-looking visibility remains incredibly challenging,” CNBC reported.
According to The Verge, the layoffs are expected to affect more than 1,000 of Snap’s roughly 6,400 employees with two departments – hardware and developer products – shouldering the brunt of the cuts.
Snap is not the only social media company struggling to make goal, however.
Facebook-parent Meta and Pinterest both missed analysts’ second-quarter estimates, CNBC reported.
“The social media companies blamed some of their problems on businesses cutting back on digital advertising because of the weak economy,” thenetwork reported. “Additionally, these companies have said that a 2021 privacy update to Apple’s iOS has made it more difficult for them to track users, thus negatively impacting their online ad units.”
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