Snap Gears Up To Fire More Employees As Company Isn’t Happy With How Business Is Performing

The current period of economic uncertainty is certainly taking a toll on so many businesses and the digital world is no exception.

Recently, Snap announced how it’s not happy with the way things are going in the company. For this reason, the firm is laying off several of its employees to help compensate for the losses incurred.

While the decision is only initial with the organization claiming to be in its early era of planning the layoffs, employees are definitely worried, as revealed by two unidentified sources close to the company.

The planned firing comes during a period when the organization unveiled its earnings reports for Q2 of 2022 which was disappointing, to say the least. Moreover, a leading entity not being able to forecast any earnings in the upcoming quarter definitely rings another warning bell.

Currently, the enterprise's stock prices have reached an all-time low. So we are not aware of how many of its 6000-member workforces would be shown the door as the firm’s managers are still making plans for the final cut on the team.

At the moment, the company’s leading execs are failing to issue public statements on the matter. And if you’re wondering why Snap’s performance is yet to be up to the mark, well, there are clearly two reasons.

For starters, it has to do with Apple and its introduction of forbidding apps from not tracking users, without their consent. And as you can imagine, the majority of users have said yes to the setup and that’s causing trouble with so many apps like Snapchat to efficiently target them using ads.

The second factor worth consideration is the current economic situation that has led to stocks falling to an all-time low. To better put things into perspective, Snap says that the last time it went out with profitable earnings was way back in 2017. And since then, it’s been struggling.

Meanwhile, previous reports show how the last time Snap fired its members was way back in 2018 when it struggled to come back to its reigning position, thanks to a decision that involved redesigning its entire interface.

But after that, we saw the company grow in terms of users, beating out Twitter in this respect as well.

With that being said, Snap is still struggling in terms of creating the right business for its ads. This includes poor attempts made by the app toward effectively selling its hardware. A common example in this regard is its $230 innovative drone that’s specially designed to take selfies.

This is why CEO Evan Spiegal is trying to make amends and if that means greatly taking a back seat in terms of hiring for the company, then so be it.

We must mention how Snap is not alone at the moment in terms of making employee cuts. We’re seeing several tech giants make the same decision in the past few months. This includes the likes of Meta who has sent out warnings to all employees about how there are certainly some really tough moments ahead.

Read next: Snapchat shares new insight for advertisers to help them build a stronger connection with their audience
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