Snapchat (SNAP) plans to lay off 20% of staff this week
Snapchat's parent company is said to be planning to reduce its staff later in the week.
In the wake of its stock plummeting in value, Snapchat (SNAP) parent company Snap Inc. is planning to cut 20 percent of the current workforce. Sources indicate that the company plans to begin laying off members of the 6,400 person staff starting on Wednesday.
The report comes from The Verge. It notes that certain sections of the Snapchat office will be more heavily affected than others. Cuts are expected to greatly impact the parts of the team working on social mapping app Zenly, the team working to craft apps and games from within the Snapchat interface, and the Snap hardware division. The latter, speficially, reflects the fallout of one of Snap's great failures, as the company continues to feel the heat from the AR Spectacles fiasco that dates all the way back to 2017.
The layoffs are expected to be attributed to the ongoing recession, as well as both Apple and Google working to limit ad tracking. Snap Inc. (SNAP) closed Tuesday's trading at $10.01 a share.
How this will ultimately affect Snapchat's future remains to be seen, especially given that Snap Inc. reported an increase in both revenue and active users in its Q2 2022 financial results. We'll watch this story on Shacknews as it develops.
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