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Snapchat plans to ax greater than 1,200 employees amid brutal stock slump: report

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Snapchat parent Snap Inc. is planning to put off about 20% of its workforce — or greater than 1,200 employees — amid a brutal stock slump, in accordance with a report on Tuesday. 

The social media app’s layoffs will start on Wednesday, the Verge reported. Snapchat currently employs greater than 6,400 people, in accordance with the outlet. Twenty percent of that figure can be 1,280 employees.

Individually,  two senior promoting executives have exited the corporate. The executives Jeremi Gorman, chief business officer, and Peter Naylor, vice chairman of ad sales for the Americas, will join Netflix, the streaming major said.

The news comes as Snapchat’s stock has fallen greater than 86% over the past 12 months to shut at $10.02 on Tuesday. Snap shares fell 4% in prolonged trading.

Investors have soured on the social media app as its revenue and user growth have slowed and it’s faced heightened competition from rivals like Instagram, TikTok and BeReal. 

Snap didn’t immediately reply to a request for comment. 

Divisions that shall be most affected by the layoffs include a team that helps developers construct apps and games inside Snapchat — in addition to a team that works on hardware like the corporate’s augmented reality glasses and recently canceled drone, in accordance with the Verge. 

Other tech firms including LinkedIn, Coinbase and Netflix have had rounds of layoffs this summer as rising rates of interest squeeze the sector. Big Tech firms like Apple, Microsoft, Meta and Google have slowed or frozen hiring.

Gorman will join Netflix as president of worldwide sales, while Naylor shall be vice chairman of promoting sales starting September, Netflix said in a press release.

With Post wires

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