Social media company Snap is looking to cut some of its 6,000 staff after a disappointing second quarter.
The company has seen poor results and its stock price hit a near all-time low.
It’s not yet known how many staff will be cut.
Snap representative Russ Caditz-Peck declined to comment.
Snap’s business has recently suffered on two fronts.
The first is Apple’s implementation of the “Ask App Not to Track” prompt, to which an estimated 70 percent of iPhone customers have responded “Yes,” making it more difficult for firms like Snap to target their ads as efficiently.
The second aspect is the larger economic slump, which has affected the stock prices of Snap and other cash-burning firms in particular.
Since going public in 2017, Snap has only had one profitable quarter.
The company is also facing a legal battle with Facebook owner Meta over data.
Snap last slashed employees in 2018, when the company was still recovering from the aftermath of a botched Snapchat revamp.
Its user base has now increased to 347 million daily users, beating Twitter.
However, the company has struggled to establish a large advertising business.
And its attempts to sell hardware, such as a $230 selfie drone, have failed.
In late May, CEO Evan Spiegel informed staff that the business will drastically reduce recruiting in order to “find additional cost savings.”
Snap isn’t the only firm that has to make cuts as Twitter, TikTok, and a slew of other tech companies have either announced layoffs or halted hiring in recent months.
Even Snap’s much larger and more prosperous social media competitor, Meta, has paused recruiting and cautioned staff that tough times are ahead.
Source: The Verge