Snap reportedly planning employee layoffs
The social media company would not confirm the layoffs
Snap Inc. is reportedly in the early stages of planning layoffs.
The Verge reported Monday, citing people familiar with the plans, that the number of jobs cut remains unclear, as managers are still planning.
Snap declined to comment on the matter.
This comes after Snap CEO Evan Spiegel told employees in May that the company would slow hiring for the year.
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Snapchat logo is seen in this illustration taken July 28, 2022. (REUTERS/Dado Ruvic/Illustration / Reuters)
Spiegel said the company's second-quarter earnings report did not reflect the company's ambition.
"We are evolving our business and strategy to reaccelerate revenue growth, including innovating on our products, investing heavily in our direct response advertising business, and cultivating new sources of revenue to help diversify our topline growth," he said.
Snap declined to make a forecast in "incredibly challenging" conditions last month, sending shares down by 25%.
FILE PHOTO: The Snapchat messaging application is seen on a phone screen August 3, 2017. (REUTERS/Thomas White/File Photo / Reuters)
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Other tech firms have announced layoffs or paused hiring recently.
Despite a much better than expected jobs report for July, layoffs are rolling in at a brisk pace at the start of August.
FILE PHOTO: Snapchat logo is seen in this illustration taken July 28, 2022. (REUTERS/Dado Ruvic/Illustration/File Photo / Reuters)
According to the Labor Department, 528,000 jobs were added to the U.S. economy in July.
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Momentum is expected to cool in the coming months.
FOX Business' Breck Dumas and Reuters contributed to this report.