Bad news for Snap. The parent company of messaging app Snapchat is preparing to cut around 20% of its workforce. Specifically, more than 1,200 employees of the 6,400 that make up the group are called to leave the company in the very near future, reports the specialized site The Verge citing close sources.
The small ghost messaging system begins its wave of layoffs this Wednesday and some departments of the group are more affected than others. Thus, the pole in charge of developing video games for the application, the team that is in charge of zenly, the social mapping application acquired by Snap in 2017, and the group’s hardware division will suffer significant cuts, lists The Verge. Snapchat recently announced that your Pixy mini drone He would not have a successor at the moment.
Disappointing financial results
In response to the news, Snap shares fell 2.53% at the end of trading on the New York Stock Exchange on Tuesday (Aug 30) and fell an additional 4% in electronic trading after the official closure, AFP said. While the scale of this wave of layoffs is significant, it’s not necessarily a surprise: Snap said in July that he was counting slow down hiring and was looking for ways to cut costs.
It must be said that the price of its shares has lost almost 80% of its value since the beginning of the year. Already in July, the group plunged more than 35% on Wall Street after reporting a loss of $442 million in the second quarter. Scalded, the company did not want to give financial forecasts for the third quarter.
Snapchat+ as a lifeline
Against a backdrop of falling ad revenue, Snapchat’s parent company is looking to diversify its revenue streams to regain control. With this in mind, the group, which has never generated an annual net profit, launched Snapchat+a paid version of the application.
For 3.99 euros per month, this premium subscription gives access to unprecedented customization options. This new feature is a quick hit. According to the social network, one million subscribers have been seduced since its launch a month ago.
Source: BFM TV
Emily Miller is a voice to be reckoned with in the world of opinion journalism. As a writer for News Rebeat, she brings a unique and thought-provoking perspective to current events and political issues, delivering insightful and engaging commentary.