(Boursier.com) — Snap , the parent company of the social network Snapchat, stumbled an additional 6% after trading on Wall Street last night. The Verge, citing unnamed sources, believes the group is on the verge of a major wave of layoffs after posting disappointing advertising revenue. Snap would thus consider cutting 20% of its workforce. At the end of June 2022, the group had nearly 6,450 employees, an increase of 38% year-on-year. As part of the layoff plan, Snap’s advertising group would be restructured. The teams most affected would be those working on how developers design mini-applications and games for Snapchat, Zenly (a social mapping application acquired in 2017), as well as the hardware division.
In the recent announcement of its second quarter results, Snap indicated its intention to substantially slow its rate of recruitment and the growth of operating expenses. For the period, the group had unveiled revenues of 1.11 billion dollars, an increase of 13%, but a substantial net loss of 422 million dollars. The group had thus missed the consensus of Wall Street and had refrained from any guidance for the third quarter, citing the uncertainties of the operating environment. In its letter to investors, the group had clarified that at this stage, third-quarter revenues were fairly stable year-on-year.
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