Snap (SNAP), the company behind social media app Snapchat, is laying off 20% of its
workforce as its business continues to slow coming out of the COVID-19 pandemic.
The headcount reduction will impact more than 1,000 employees and affect departments such
as hardware and developer products, according to multiple media reports.
Snap recently announced second quarter earnings that missed Wall Street expectations on both
the top and bottom lines. The company declined to provide any forward guidance. The
company’s stock fell more than 25% immediately after it reported Q2 results.
Snap has blamed its problems on businesses cutting back on digital advertising because of high
inflation and rising interest rates, as well as slowing user growth coming out of the global
pandemic.
In early August, Snap canceled plans to develop a flying camera drone, which it had first
announced this past April.
Snap’s stock is down 79% this year and currently trading at $10.01 U.S. per share.
