uploads///Snap Inc

Why Snap Laid Off Another 100 Employees


Dec. 4 2020, Updated 10:52 a.m. ET

Snap is on a layoff spree as it seeks to rein in expenses

Snapchat’s parent company Snap (SNAP) has been laying off employees recently to curb rising expenses. The company laid off 120 employees from its engineering group in March after handing pink slips to 22 employees from its content and other division earlier this year. Snap’s net loss almost doubled YoY to $350 million in 4Q17.

According to Bloomberg, the company is now laying off 100 more employees, or roughly 3% of its workforce, which will mostly affect the company’s sales staff. Snap had a little over 3,000 employees as of the end of 4Q17. These cuts come after a period of brisk hiring.

Article continues below advertisement

Why Snap’s stock has been volatile

The company has faced a few issues this year including user revolt on the major redesign of the app. The company’s stock crashed after celebrities like Kylie Jenner said publicly that they do not like the new design. Pop singer Rihanna objected to an ad posted on the platform.

That said, there are a few things going in the company’s favor. The company surprised investors with its 4Q17 earnings, which lifted the stock up in February. A report by eMarketer suggests that Snap’s ad revenue would surge this year, which could lead to an increase in its market share in US ad dollars. Also, Snapchat could be one of the beneficiaries of the recent Facebook (FB) controversy.


More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo
    Do Not Sell My Personal Information

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.