Snap to lay off 20% of its workforce: report
The job cuts will reportedly begin Wednesday
Snap, Inc. is reportedly planning to lay of roughly 20% of its workforce starting Wednesday following reports from earlier this month that the Snapchat parent company was preparing to slash jobs.
The Snapchat messaging application on a phone screen Aug. 3, 2017. (REUTERS/Thomas White/File Photo / Reuters)
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SNAP | SNAP INC. | 8.65 | +0.27 | +3.22% |
Citing people familiar with the situation, The Verge reported Tuesday that approximately one-fifth of Snap's 6,400-plus employees are on the chopping block after reporting weeks earlier that such plans were in the works.
Snap, the parent company of social media app Snapchat, declined to comment to FOX Business regarding both reports.
The report of forthcoming layoffs comes after Snap CEO Evan Spiegel told employees in the spring that the company would slow hiring for the year.
Snap CEO Evan Spiegel (Sipa USA via AP / AP Newsroom)
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Snap then declined to give a forecast in July, citing "incredibly challenging" conditions, giving investors jitters and sending shares down 25%.
Snap Inc. shares plunged 38% during Friday's trading session after it reported disappointing second-quarter earnings results. (iStock / iStock)
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The company's stock has plummeted nearly 80% this year, closing Tuesday at $10.03.
FOX Business' Julia Musto contributed to this report.