Snap is planning to lay off approx. 20% of its employees

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According to reports, the company that owns Snapchat, Snap, plans to let off about 20% of its employees (that is approx 1, 300). The Verge learned from Snap employees that the process will start on Wednesday, August 31, and that some departments would be struck more severely than others. Snap employs around 6,400 people. The Snap Minis team, which has been developing games for the app, would be adversely damaged, according to the source. Employees at Zenly, the social mapping firm Snap acquired in 2017, will also be let go.

Snap has not yet verified the report, but it is not the only major digital business to lay off staff in an effort to reduce expenses in the face of a faltering economy. At the start of the COVID-19 pandemic, the creator of Snapchat was one of the businesses that quickly expanded operations. In March 2020, there were about 3,400 employees, and there were about 6,400 during the most recent quarter.

The Snap hardware team, which is in charge of the Pixy drone camera and AR Spectacles spectacles, is another group that could apparently experience layoffs. Despite doing a respectable job of creating remarkable gear, the department was unable to attain financial success. The development coincides with Jeremi Gorman, Snap’s chief business officer, departing for Netflix.

Although it is not surprising given that the corporation had already hinted at something similar earlier this month, the scope of the layoffs appears big (and it is huge). According to a source familiar with the situation, Snap has begun to prepare layoffs. Evan Spiegel, the CEO of Snap, also informed staff that the business would reduce employment and “find additional cost savings.”

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