Snapchat mum or dad Snap Inc. is planning to put off about 20% of its workforce — or greater than 1,200 workers — amid a brutal inventory stoop, in accordance with a report on Tuesday.
The social media app’s layoffs will begin on Wednesday, the Verge reported. Snapchat at the moment employs greater than 6,400 individuals, in accordance with the outlet. Twenty % of that determine can be 1,280 workers.
The information comes as Snapchat’s inventory has fallen greater than 86% over the previous yr to shut at $10.02 on Tuesday.
Buyers have soured on the social media app as its revenue and user growth have slowed and it’s confronted heightened competitors from rivals like Instagram, TikTok and BeReal.
Snap didn’t instantly reply to a request for remark.
Divisions that shall be most affected by the layoffs embrace a staff that helps builders construct apps and video games inside Snapchat — in addition to a staff that works on {hardware} like the corporate’s augmented actuality glasses and not too long ago canceled drone, in accordance with the Verge.
Different tech companies together with LinkedIn, Coinbase and Netflix have had rounds of layoffs this summer season as rising rates of interest squeeze the sector. Huge Tech firms like Apple, Microsoft, Meta and Google have slowed or frozen hiring.
