The wave of layoffs that has shaken large technology companies since the beginning of the year has hit Snap this Monday, a social network that plans to lay off nearly 500 employees, 10% of its workforce. According to CNBC, the American company has been reducing its human resources since 2022, especially in August of that year, when it applied scissors to 20% of its employees. The social giant now extends the machinery of adjustments, for which it has a budget of between 55 and 75 million euros in this process.
A Snap spokesperson acknowledged to CNBC television that his company is “reorganizing the team to reduce hierarchy and promote in-person collaboration. We are focused on supporting our team members who are leaving.” Contrary to what usually happens in these circumstances, the stock market’s response was adverse, since the shares of the Santa Monica (California, USA) company fell almost 3% in the first hours of trading, to 16. $39, a far cry from its all-time highs of $83 in 2021.
The Californian company has started the year on the wrong foot, since the recent adjustments are added to the adjustments underway appearance of its founder and chief executive, Evan Spiegel, before the Senate Judiciary Committee of the United States, because of the investigations carried out by this organization on the damage that social networks cause to young people.
The rivalry with TikTok, the problems related to user privacy and Lower online advertising revenue has affected a company that managed to grow revenue in its last fiscal quarter despite the sluggishness of the subscription business, which maintains 5 million accesses. Said premium access costs about $4 per month and offers exclusive features on the platform. Currently, the number of active Snapchat users exceeds 400 million users.