Snap will lay off 20% of staff, report says

Co-founder and CEO of Snap Inc. Evan Spiegel attends the Viva Technology conference dedicated to innovation and startups, at the Porte de Versailles exhibition center in Paris, France June 17, 2022.

Benoit Tessier | Reuters

Snap is laying off 20% of its workforce, which equates to over 1,000 employees, according to a report published Tuesday by the Verge.

The layoffs will begin on Wednesday, the report said, and will affect certain departments including hardware and developer products.

Snap has had a difficult year, with the company most recently missing on both revenues and earnings of its second-quarter earnings.

In its Q2 investor letter on July 21, Snap said it would not provide guidance for its current quarter and said “forward-looking visibility remains incredibly challenging.” 

Earlier in August, Snap scrapped the development of its Pixy flying camera drone, first announced in April.

Snap did not immediately respond to a request for comment

The company’s shares finished down more than 2% and continue to fall after hours.

This is breaking news. Please check back for updates.