Fri, March 29, 2024

Snap Cutting a Fifth of Its Employees

Snap

Snapchat is one of the few social networks that has managed to maintain relevancy for many years. Despite others like Instagram copying key features, it has managed to stay interesting and useful enough to keep a healthy base of users. However, it seems like the company is struggling a bit, as layoffs are inbound.

As the online advertising industry weakens, it seems Snap’s business model is less sustainable than before. With less than 30 minutes left in Tuesday’s trading session, the Verge made the cutoff public. Snap would be losing about a fifth of its employees in a considerable downsizing.

The primary factor behind the decision is a disappointing quarterly report for the company. The layoff was not entirely unannounced, as it was discussed as soon as quarterly results came in.

As such, Snap holders may have been prepared for such a drastic announcement. The stock value of the company has seen a decline, but not as massive as some would expect. At the time of writing, Snap is 2.53% down in the past 24 hours.

Before the downsizing, Snap has seen a significant growth in employee numbers during the past two years. At the start of 2021, the company numbered 3,863 workers. That number grew to 5,661 at the start of 2022 and kept growing rapidly. At the time of the decision, the total number of employees is over 6,400.

We may be seeing the demise of Snapchat unfold, as company results have been quite poor for a while. It’s lost nearly 80% of its stock value since the start of the year, underperforming significantly compared to its primary competitors. That pairs with an overall decline in the online advertisement industry and results in a deadly concoction for Snap. We’ll see whether it manages to stay afloat on its own.

YOU MAY ALSO LIKE

Wibest – NZD/USD: New Zealand dollar notes and coins.

Quick Look: NZD/USD drops below 0.6000 due to a stronger USD and

Dollar edges back from a 16-month peak

Quick Look: The dollar strengthens against major currencies before the crucial U.S.

Ford

Quick Look: CVA Family Office LLC snaps up 4,559 shares of Ford

COMMENTS

Leave a Comment

Your email address will not be published. Required fields are marked *

User Review
  • Support
    Sending
  • Platform
    Sending
  • Spreads
    Sending
  • Trading Instument
    Sending

BROKER NEWS

Plus500 Expands Office Space in Haifa and Boosts Hiring

Plus500 has significantly expanded its Haifa office space and increased recruitment efforts across various departments. Local news source Walla reports the brokerage has leased an additional 5,800 square meters in the Gev-Yam complex

BROKER NEWS

Stock Report – stock exchange background – WibestBroker

Plus500 Expands Office Space in Haifa and Boosts Hiring

Plus500 has significantly expanded its Haifa office space and increased recruitment efforts across various departments. Local news source Walla reports the brokerage has leased an additional 5,800 square meters in the Gev-Yam complex in