Snap has decided to lay off 20% of its workforce, which is equivalent to more than 1,000 employees, according to The Verge.
According to Arab Net, the layoffs will start from today, Wednesday, and will affect certain departments, including hardware products and developers.
This comes after Snap had a difficult year, as both revenue and profit fell in the second quarter. In its second-quarter investor letter on July 21, the company said it would not provide guidance for its current quarter and said the forward-looking vision remains incredibly challenging.
Snap shares fell more than 25% on the day it announced its second-quarter earnings. The company's disappointing results set off a wave of social media companies reporting poor results, citing a weak online advertising market, among other reasons.
Meta, Facebook's parent company, missed analyst estimates for the second quarter, as did Pinterest.
Social media companies have blamed some of their problems on companies cutting back on digital advertising due to the weak economy. Additionally, these companies said that Apple's 2021 privacy update for iOS made it more difficult to track users, negatively impacting their online ad units.
