Snap laying off around 1,280 employees amid poor growth
Snap, the parent company of Snapchat, is reportedly laying off 20 per cent of its workforce (around 1,280 employees), and the company's Chief Business Officer Jeremi Gorman is leaving to join Netflix.
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San Francisco, Aug 31 Snap, the parent company of Snapchat, is reportedly laying off 20 per cent of its workforce (around 1,280 employees), and the company's Chief Business Officer Jeremi Gorman is leaving to join Netflix.
According to a report in The Verge citing sources, the layoffs that started from Wednesday will hit some verticals harder than others.
Snap currently has more than 6,400 employees, which means nearly 1,280 employees will be shown the door.
The team working on mini apps and games inside Snapchat will be severely impacted, the report said late on Tuesday.
Another team that will see layoffs is Snap's hardware division, which is responsible for its AR Spectacles glasses and the Pixy camera drone.
The company declined to comment on the layoffs.
Snap's stock has tanked nearly 80 per cent since the beginning of this year.
Reports earlier surfaced that Snap was set to sack employees and was in early stages of planning layoffs.
The job cuts at Snap were coming after the company posted disastrous quarterly results (Q2) amid poor future forecast.
Snap suffered nearly $10 billion loss and its shares hit a new 52-week low over disappointing quarterly results last month.
The company reported a net loss of $422 million compared to $152 million in the prior year as it "substantially" reduced hiring.
Snap had earlier announced to slow down hiring this year.
