Snap Inc, the company behind Snapchat and other digital platforms, plans to lay off about 20% of its more than 6,400 employees.
Those layoffs, reported by people close to the company, would start today.
Snap starts shrinking your squad
According to reports from The Verge, Snap has planned the round of layoffs that would begin today in the company, according to the sources cited.
Layoffs apply to the entire company, but are more focused on specific areas. Those mentioned in the report include Snapchat’s applets and game development team, Zenly’s social mapping app team, and Snap’s hardware division, which is responsible for the recently discontinued Spectacles augmented reality glasses and drone. with Pixy camera.
At the executive level. Renovation is also underway. The announcement of the resignation of Jeremi Gorman, Snap’s chief operating officer, to join the advertising division of Netflix stands out.
On the economic front, Snap’s shares suffered aggressive depreciation. Compared to the beginning of the year they have lost 80% of their value.
Given the global economic outlook and its less-than-optimistic forecasts, the company refrained from making any predictions in its latest shareholder report and announced that it would work to cut costs and reduce the number of employees.
One factor not to be overlooked in this analysis is the “rebound effect” that is occurring in some tech companies after the peak of the pandemic has passed. In Snap’s case, it had approximately 3,427 full-time employees as of March 2020 and ended the most recent quarter at 6,446. The success of the time was also reflected in the subsequent acquisitions of other companies that were integrated into the Snap portfolio and services.
Aside from the financial issues, Snap can get accounts satisfied in other respects. The user base is growing steadily, reaching 347 million daily users, a number that could help them get through this difficult period if their restructuring plans pay off.