Bad news from Snapwhich seems to be planning to lay off 20% of its 6400 employees, at least according to some rumors close to the company. The layoffs, apparently, will begin in these days and will affect some departments more than others. These include the team working on ways developers can create mini apps and games within Snapchat, and the team managing the Zenly social mapping app. But let’s find out more about the future of Snap’s employees.
Snap: 20% of employees will be fired
In the crosshairs of the cuts to the staff of Snap also ends up the hardware division of the company, responsible for AR Spectacles glasses and the Pixy camera drone, recently canceled after being on sale for a few months. The same fate also applies to the company’s ad sales department, which recently saw the passing of Jeremiah Gorman, which will soon be coming to Netflix. In all of this Russ Caditz-Pecka Snap spokesperson, declined to comment on the layoffs.
In any case, the staff cuts project shouldn’t surprise us too much. Snap’s share price it has lost almost 80% of its value since the beginning of this year, and already in May the company announced its willingness to open new hires. And as if that weren’t enough, it achieved somewhat sad results in the second quarter of the year, and announced almost worse forecasts in the third quarter. As you can imagine, this is a strong turnaround from the initial period of the pandemic when Snap took over about 3000 employees between March 2020 and March 2021.
The problem, however, is that Snap’s business didn’t fare well as it emerged from the pandemic. And this has had terrible repercussions on the company’s management of employees. Snap’s user base has continued to grow strongly, but the same cannot be said for its profits. And this can only translate into one choice: cut staff to stay afloat.