Snap plans to lay off employees

Snap Inc (SNAP.N) is in early stages of planning layoffs, the Verge reported on Monday, citing people familiar with the plans.

The scope of the job cuts is currently unclear as managers are still planning it for their teams, the report said, adding that the Snapchat-owner has more than 6,000 employees. (https://bit.ly/3QaAmql)

Snap declined to comment when contacted by Reuters.

The development comes as technology companies, crypto exchanges and financial firms cut jobs and slow hiring as global economic growth slows due to higher interest rates, red-hot inflation and an energy crisis in Europe.

Facebook-owner Meta Platforms Inc (META.O) cut plans to hire engineers by at least 30% this year, CEO Mark Zuckerberg had told employees on June, and he warned them to brace for a deep economic downturn.

Snap CEO Evan Spiegel also told employees in a memo in May that the company will slow hiring for this year and laid out a broad slate of problems.

Last month, the company painted a grim picture of the effects of a weakening economy on social media and declined to make a forecast in “incredibly challenging” conditions, sending its shares down 25%.