Snapchat, the multimedia instant messaging app and service, is reportedly gearing up to reduce headcount. Its parent company, Snap reported losses of almost $10 billion and its shares dipped following the poor quarterly performance in July.
A couple of months ago, the CEO of Snapchapt had indicated that hiring will be slowed down. Employees had been told that the Company would be hiring only about 500 people compared to the 2,000 that were hired over the last one year. Investors had also been told not to expect revenues to grow at the expected pace.
However, the photo-sharing service is yet to officially reveal the exact number of job cuts it is planning across the Company. Its managers are reportedly still working out the cuts.
The Company is said to have incurred a net loss of about $422 million. In the previous year, the loss was about $152 million. The forecast doesn’t look too bright either.
A hiring slowdown is not new presently, as most tech majors are either pausing or freezing hiring amidst fears of recession. Rising inflation, the Ukraine war and supply-chain challenges are only adding to the woes.
Snapchat was recently in the news when it announced the launch of a new ‘Family Centre’ feature to allow parents to see who their children or teenagers are messaging or chatting with on the app, without revealing the content of the messages. These supervision tools are aimed at ensuring the online safety of children.