According to The Verge, Snap Inc. plans to cut off around 20 percent of its around 6,400 employees.
The report claims that the layoffs, which Snap has been planning for some weeks, will begin on August 31 and will affect some departments more than others.
For instance, the team working on ways for developers to create Snapchat mini-apps and games may be badly affected. Zenly, a social mapping startup that Snap acquired in 2017 and has since operated independently, will also experience a lot of layoffs.
Snap's hardware group, which is responsible for its AR Spectacles eyewear and the Pixy camera drone that was discontinued after just a few months on the market, will also see layoffs.
Snap's chief commercial officer, Jeremi Gorman, is leaving to oversee advertisements for Netflix, resulting in a restructuring of the company's ad sales division.
Even while the magnitude of the layoffs is substantial, it shouldn't necessarily come as a shock. Since the beginning of this year, Snap's stock has lost about 80 percent of its value, and the business said in May that it will reduce employment and search for cost-cutting opportunities.
Snap Inc. has not done well after the pandemic due to worries of a recession and difficulties negotiating Apple's ban on ad tracking across iOS applications.
Snap has 347 million daily users, which is more than Twitter, but it has only turned a profit once since going public in 2017.
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