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Snap Announces Plans To Cut Back Hiring as it Posts Bleak Results (ft.com) 8

Snap announced plans to "substantially reduce" hiring and shake up its strategy as it posted bleak second-quarter results, blaming tough macroeconomic conditions but also stating it was "not satisfied with the resultsâ... regardless of the current headwinds." From a report: The social media company lost about a quarter of its value on Thursday after posting the results, which chief executive Evan Spiegel said "do not reflect our ambition." Revenues at the Los Angeles-based social media company increased 13 per cent to $1.11bn in the three months to the end of June, just shy of analysts' consensus of $1.13bn. Net losses stood at $422mn, a drop of 178 per cent year-on-year and far greater than analyst estimates of losses of $340mn, according to data compiled by S&P Capital IQ.

[...] Spiegel said that Snap planned to focus on product innovation, diversifying revenue and investment in its direct response advertising business in order to address the slowdown. In a letter to investors on Thursday, Snap said that brands were slashing digital advertising budgets due to the wider economic slowdown and inflationary pressures, as well as privacy changes by Apple that have made it harder to target advertising and measure the success of campaigns. It also said business had been hurt by increased competition, as new entrants such as Chinese-owned TikTok take market share.

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Snap Announces Plans To Cut Back Hiring as it Posts Bleak Results

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