Following weeks of preparation, Snap Inc. plans to let go of 20% of its almost 6,500 employees. The team responsible for Minis, brief third-party programs that run within the Snapchat app, will be most negatively impacted by the job cuts, which will start on Wednesday, according to the article. The layoffs will also have an impact on Zenly, the social mapping firm Snap purchased in 2017.
A Snap spokesperson declined to comment to The Verge.
Snap shares fell 2.5% to $10.01 at the close in New York. The stock has slumped 79% this year as the company has faced a slowdown in advertiser spending on the platform. Due to the uncertainty, Snap told investors in July that it wouldn’t offer specific guidance for the current quarter.
To weather the business environment, the company has said it will focus on three main priorities: growing the user base, improving direct-response advertising business and how it measures ad spending and finding new sources of revenue.
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