Technology

Snap plans to lay off employees, says The Verge

The Snapchat owner is one of many companies in the tech sector feeling the chills of a slowing economy

The Snapchat owner is one of many companies in the tech sector feeling the chills of a slowing economy | Photo Credit: REUTERS

Snap Inc is in early stages of planning layoffs, the Verge reported on Monday, citing people familiar with the plans.

(Sign up to our Technology newsletter, Today’s Cache, for insights on emerging themes at the intersection of technology, business and policy. Click here to subscribe for free.)

The scope of the job cuts is currently unclear as managers are still planning it for their teams, the report said, adding that the Snapchat-owner has more than 6,000 employees.

Snap declined to comment when contacted by Reuters.

The development comes as technology companies, crypto exchanges, and financial firms cut jobs and slow hiring as global economic growth slows due to higher interest rates, red-hot inflation and an energy crisis in Europe.

Facebook-owner Meta Platforms Inc cut plans to hire engineers by at least 30% this year, CEO Mark Zuckerberg had told employees in June, and he warned them to brace for a deep economic downturn.

Snap CEO Evan Spiegel also told employees in a memo in May that the company will slow hiring for this year and laid out a broad slate of problems.

Last month, the company painted a grim picture of the effects of a weakening economy on social media and declined to make a forecast in "incredibly challenging" conditions, sending its shares down 25%.


Our code of editorial values

  1. Comments will be moderated by The Hindu editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.

Printable version | Aug 9, 2022 12:53:52 pm | https://www.thehindu.com/sci-tech/technology/snap-plans-to-lay-off-employees-says-the-verge/article65749028.ece