Snap, the parent company of Snapchat has been reportedly laying off 20 per cent of its workforce- which is around 1,280 employees, and the company's Chief Business Officer Jeremi Gorman is leaving to join Netflix.
According to a report in The Verge, the layoffs will start from today onwards and will hit some verticals harder than others.
Snap currently has more than 6,400 employees, out of which around 1,280 employees will be shown the door.
Snapchat
The team has been working on the mini apps and games inside Snapchat which will be severely impacted, the report said on Tuesday.
Snap's hardware division is another team which is expected to face layoffs. The hardware division is majorly responsible for its AR Spectacles glasses and the Pixy camera drone.
Sources have further stated that the company is declining to comment on the layoffs.
Snap's stock has tanked nearly 80 per cent since the beginning of this year. Also, some reports surfaced in the recent past which state that Snap was set to sack employees and was in the early stages of planning layoffs.
The job cuts at Snap were coming after the company posted disastrous quarterly results (Q2) amid poor future forecasts.
Snap suffered a nearly $10 billion loss and its shares hit a new 52-week low over disappointing quarterly results last month.
The company reported a net loss of $422 million compared to $152 million in the prior year as it "substantially" reduced hiring.
Snap had earlier announced to slow down hiring this year.
Inputs from IANS
