https://www.theverge.com/2022/8/30/23329301/snap-layoffs-20-percent-employees-snapchat

Skip to main content
The Verge homepage

Follow The Verge online:

  *  
  *  
  *  

Log in or sign up

  * Log In
  * Sign Up

Site search

Search

The Verge main menu

  * Tech
  * Reviews
  * Science
  * Creators
  * Entertainment
  * Video
  * Features
  * Podcasts
  * Newsletters
  * Merch Store
  * More

[                    ] [Search]
  * Tech
      + Video
      + Amazon
      + Apple
      + Facebook
      + Google
      + Microsoft
      + Samsung
      + Tesla
      + AI
      + Cars
      + Cybersecurity
      + Mobile
      + Policy
      + Privacy
      + Scooters
      + All Tech
  * Reviews
      + Phones
      + Laptops
      + Headphones
      + Cameras
      + Tablets
      + Smartwatches
      + Speakers
      + Drones
      + Accessories
      + Buying Guides
      + How-tos
      + Deals
      + More from Verge Reviews
  * Science
      + Video
      + Space
      + NASA
      + SpaceX
      + Health
      + Energy
      + Environment
      + All Science
  * Creators
      + YouTube
      + Instagram
      + Adobe
      + Kickstarter
      + Tumblr
      + Art Club
      + Cameras
      + Photography
      + What's in your bag?
      + All Creators
  * Entertainment
      + Film
      + TV
      + Games
      + Fortnite
      + Game of Thrones
      + Books
      + Comics
      + Music
      + All Entertainment
  * Video
  * Features
  * Podcasts
  * Newsletters
  * Merch Store 

Filed under:

  * Tech
  * Snapchat

Snap plans to lay off 20 percent of employees

New, 21 comments

Snap's stock price has declined nearly 80 percent this year

By Alex Heath@alexeheath Aug 30, 2022, 3:40pm EDT
21 comments / new

Share this story

  * Share this on Facebook
  * Share this on Twitter
  * Share All sharing options

Share All sharing options for: Snap plans to lay off 20 percent of
employees

  * Linkedin
  * Reddit
  * Pocket
  * Flipboard
  * Email

[acastro_ST] Illustration by Alex Castro / The Verge

Snap is planning to lay off approximately 20 percent of its more than
6,400 employees, according to people familiar with the matter.

The layoffs, which Snap has been planning for the past several weeks,
will begin on Wednesday and hit some departments harder than others,
the people said. For example, the team working on ways for developers
to build mini apps and games inside Snapchat will be severely
impacted. Zenly, the social mapping app Snap bought in 2017 and has
since run separately, will also see deep cuts.

Another team that will see layoffs is Snap's hardware division, which
is responsible for its AR Spectacles glasses and the Pixy camera
drone that was recently canceled after being on sale for just a few
months. The company's ad sales organization is also being
restructured with Jeremi Gorman, Snap's chief business officer,
departing to run ads for Netflix.

Russ Caditz-Peck, a Snap spokesperson, declined to comment on the
layoffs.

Though the scale of the layoffs is significant, it shouldn't
necessarily come as a surprise: Snap's stock price has lost nearly 80
percent of its value since the beginning of this year, and the
company said in May that it would slow hiring and look for ways to
cut costs. It then delivered dismal earnings for the second quarter
and said it wouldn't forecast results for the third quarter.

`Snap hired aggressively during the pandemic'

Like its other tech peers, Snap hired aggressively during the
pandemic. It entered March of 2020 with roughly 3,427 full-time
employees and ended last quarter with 6,446, a 38 percent increase
from the same time last year. And in May of 2021, the company made
its largest acquisition ever by buying WaveOptics, the supplier of
the AR displays used in its latest Spectacles, for more than $500
million.

The problem is that Snap's business hasn't fared well coming out of
the pandemic, thanks to recession fears and the trouble it had
navigating Apple's crackdown on ad tracking across iOS apps. Snap's
user base has continued to grow strongly -- it has 347 million daily
users, which is more than Twitter -- but it has managed to turn a
profit only once since it went public in 2017.

Update August 30th, 5:30PM ET: Added that Snap's Chief Business
Officer is leaving for Netflix.

Next Up In Tech

Sign up for the newsletter Verge Deals

Subscribe to get the best Verge-approved tech deals of the week.

Just one more thing!

Please confirm your subscription to Verge Deals via the verification
email we just sent you.

Email (required)
[                    ]

Oops. Something went wrong. Please enter a valid email and try again.

By submitting your email, you agree to our Terms and Privacy Notice.
You can opt out at any time. This site is protected by reCAPTCHA and
the Google Privacy Policy and Terms of Service apply.
Subscribe
Loading comments...

Chorus

  * Terms of Use
  * Privacy Notice
  * Cookie Policy
  * Do Not Sell My Personal Info
  * Licensing FAQ
  * Accessibility
  * Platform Status

  * Contact
  * Tip Us
  * Community Guidelines
  * About
  * Ethics Statement

Vox Media Vox Media logo. Advertise with us Jobs @ Vox Media (c) 2022
Vox Media, LLC. All Rights Reserved
 

Share this story

  * Twitter
  * Facebook