Snapchat is planning to lay off employees: Report

The Verge reported that Snap’s business has been hurt by the introduction of Apple’s “Ask App Not to Track” prompt, which makes it harder for companies like Snap to effectively target their ads to users. Another factor that has majorly hurt Snap’s business performance is the broader economic downturn that has punished the stock prices of Snap and other cash-burning companies. Since Snap went public in 2017, it has been profitable in only one quarter so far.

The company also struggled with its attempts at selling hardware, like the $230 selfie drone.

This recent development comes as technology companies, crypto exchanges and financial firms are cutting jobs and slowing down hiring due to slower global economic growth, higher interest rates, high inflation and an energy crisis in Europe.

As per a Reuters report, Facebook-owner Meta Platforms Inc also cut plans to hire engineers by at least 30 percent this year. CEO Mark Zuckerberg had informed his employees about the cuts in June, and he warned them to brace for a deep economic downturn.