Snap to lay off 20% workforce

Snapchat parent Snap is reportedly planning to lay off roughly 1,300 employees. The Snap Minis team will be impacted severely by the layoffs, along with Snap’s hardware division that is responsible for AR Spectacles glasses and the Pixy drone camera.

One of the company’s spokespersons said that Snap is already in the early stages of planning layoffs. Snap CEO Evan Spiegel also told employees that the company would pull back on hiring and find additional cost savings.

It was earlier reported that Snap Inc’s Chief Business Officer Jeremi Gorman and Vice President of Ad Sales for the US Peter Naylor are leaving the company to join Netflix. While Gorman will join Netflix as the President of Worldwide Sales, Naylor will be the Vice President of Advertising Sales starting September this year.

The report also states that the company is also restructuring its ad-sales teams. However, Snap has not confirmed the development, but the Snapchat maker was among the companies to aggressively expand operations at the onset of the COVID-19 pandemic. It had roughly 3,400 workers in March 2020 and roughly 6,400 workers in the last quarter.

Big tech companies like TikTok, Twitter, Alibaba, Microsoft, and others have recently laid off hundreds of employees as a cost-cutting measure. Even Google and Meta also announced plans to slow down hirings amid rising inflation.