Layoffs will begin on Wednesday and will effect certain divisions such as hardware and developer products.
Snap just announced that it would retract its current-quarter guidance.
Snap is laying off 20% of its workforce, which equates to over 1,000 employees, according to a report published Tuesday by the Verge.
The layoffs will begin on Wednesday, the report said, and will affect certain departments including hardware and developer products.
Snap has had a rough year, most recently missing revenue and earnings expectations in the second quarter. Snap stated in its Q2 investor letter on July 21 that it will not provide guidance for the current quarter and that “forward-looking visibility remains exceedingly difficult.”
Snap shares fell more than 25% on the day the company published its second-quarter earnings. The company’s lacklustre results triggered a wave of social media companies announcing poor results, citing, among other things, a sluggish online advertising market.
Meta, a subsidiary of Facebook, fell short of analysts’ expectations in the second quarter, as did Pinterest.
Some of the social media companies’ issues were attributed to businesses cutting back on digital advertising due to the poor economy. Furthermore, these organisations have stated that a 2021 privacy update to Apple’s iOS has made tracking users more difficult, significantly harming their online ad units.
Snap had previously announced in April that it would discontinue development of its Pixy flying camera drone.
Snap did not respond on the report.
