Snap's revenue is still flagging and now it's firing more than 1000 workers.
👉 Background: Back in May, Snap flagged that hiring would need to slow down thanks to lower than expected revenue.
👉 What happened: Now hiring has slowed into the negative. Snap announced revenue is still flagging, and now this crew is letting go around 20% of employees - that's around 1300 people.
👉 What else: It's not just Snap that is struggling though. Other social networks that rely heavily on ad revenue are being forced to make changes, too.
💡Global ad spending is down, and companies like Snap, Meta and YouTube need to evolve their biz models to stay healthy. The culprits? Rampant inflation and the war in Ukraine are leading advertisers to tighten their purse strings globally.
💡YouTube’s ad revenue is growing at the slowest rate since Alphabet started publishing the data. Meta’s revenue (which mostly comes from ads) recently declined for the first time in a decade.
💡And then there’s Snap. But Snap has a plan - it's pushing its Snapchat+ subscription tier and Snap Spotlight, another TikTok copycat. All of which will hopefully give Snap a revenue boost, because it look like this crew really needs it.
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