United States – Snap Inc., the parent company of Snapchat, has been reportedly planning to implement layoffs.
According to recent news by The Verge, the information that the company is in the early stages of retrenchment comes from two people familiar with the plans.
The downsizing comes after the company recently registered disappointing earning results – failing to forecast earnings for the third quarter.
According to The Verge, Russ Caditz-Peck, a Snap spokesman, declined to comment on the matter.
The blow to Snap’s business can be partly attributed to Apple’s IDFA changes, which makes it more challenging for companies like it to effectively target their ads, while another factor is the larger economic downturn that dampened the stock prices of Snap and other cash-burning companies.
According to The Verge, Snap has been profitable in only one quarter since it went public in 2017. In addition, the last time Snap made layoffs was in 2018, when it was recovering from the fallout of a poorly executed Snapchat redesign.
Snap joins other Silicon Valley companies eyeing to make cuts such as Twitter and TikTok. Tech giant Oracle has also recently made ‘sizable’ layoffs in the US.