Report: Snap Planning Job Cuts After Poor Earnings Report
Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.
Snap is reportedly planning layoffs after the social media giant reported disappointing financial results.
According to The Verge, the Santa Monica-based company is in the early stages of preparing job cuts. The report, which cited two anonymous sources familiar with the plans, said it’s unclear how many of the roughly 6,000 employees will be laid off.
A Snap spokesperson declined to comment.
The potential job cuts would follow a “challenging” second quarter that saw Snap miss its earnings estimates, driving stock prices down. Snap shares have plunged more than 78% this year and stood at $10.14 as of 10:20 a.m. PST.
The photo sharing app is facing a disrupted digital ad market due to economic headwinds like inflation. Marketers have slashed ad spending lately amid fears that the economy is headed toward a recession.
Snap—which generates virtually all of its revenue from ads—is also still grappling with Apple’s decision to restrict how users are tracked on mobile devices. Beginning in April, Apple allowed consumers to opt out of tracking by software apps, making it harder for them to effectively target users with ads
If Snap goes ahead with layoffs, it would join other social media and tech firms that slashed their staff in recent months, including rival TikTok and streaming giant Netflix. But job cuts would be a more drastic step than what Snap pledged just a few weeks ago, when the photo sharing app said in a letter to shareholders that it would “substantially” slow its hiring.
Are you a Snap employee? Let us know if you have information about layoffs or any other tips about the company. Email christian@dot.la
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Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.
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