(New York) Snap, the parent company of the popular messaging app Snapchat, was heckled on the New York Stock Exchange on Tuesday after press reports suggesting the possible elimination of about 20% of its workforce, or more than 1,200 employees.
Posted at 6:14 p.m.
According to the specialized site The Verge, which cites close sources, the layoffs will begin this Wednesday in the company which had just over 6,400 employees at the end of June.
The action of the group sank after the publication of this information at the end of the session on Wall Street, losing 2.53%. It fell by more than an additional 4% in electronic exchanges following the official closing.
Contacted by AFP, Snap declined to comment.
When publishing its quarterly results at the end of July, the group had already warned that the growth of its turnover was slowing down and would therefore have to reduce its expenses. The title then collapsed by almost 40% on the New York Stock Exchange.
Like other social networks, Snap is suffering from a general reduction in advertising spending by advertisers, its livelihood, as well as an Apple regulatory change requiring users to obtain consent before tracking them. for advertising targeting purposes.
The chief financial officer had indicated during a conference call with analysts that the group had “the intention of significantly slowing down the pace of hiring in order to halt the growth of our workforce”.
Snap also stressed that short- and medium-term visibility remained “incredibly difficult” and did not wish to give financial forecasts for the third quarter.