Report – Snap to Lay Off Nearly 1,300 Employees, 20% of Headcount

Snap is reportedly getting ready to make a major round of layoffs, as Snapchat advertising sales have hit turbulence.

The social messaging and media company is set to cut 20% of its workforce, with layoffs set to begin Wednesday, the Verge reported, citing anonymous sources.

A Snap spokesperson declined to comment. As of the end of June 2022, Snap had 6,446 full-time employees, up 38% year over year.

As part of the layoffs, Snap’s advertising group will be restructured, per the Verge report. That comes as Netflix just hired Snap’s two top ad execs — chief business officer Jeremi Gorman and VP of sales Peter Naylor — to lead advertising efforts as Netflix gears up to launch a cheaper, as-supported plan in 2023.

In announcing disappointing Q2 results, Snap said it intends to “substantially slow our rate of hiring, as well as the rate of operating expense growth. We will reprioritize our investments and drive a renewed focus on productivity.”

For Q2, Snap reported revenue of $1.11 billion, up 13%, and a net loss of $422 million (an adjusted net loss of 2 cents per share), under Wall Street forecasts. Snap did not provide guidance for Q3 sales or earnings, citing “uncertainties related to the operating environment,” said said in its investor letter that so far in Q3 revenue is approximately flat on a year-over-year basis.

In the Q2 letter, Snap said “demand growth on our advertising platform has slowed significantly,” saying that in some cases advertisers have lowered their bids per action to reflect their current willingness to pay. In addition, the company said it is seeing “increasing competition for advertising dollars that are now growing more slowly.”

(Excerpt) Read more in: Variety


Report – Snap to Lay Off Nearly 1,300 Employees, 20% of Headcount

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