Posted on August 11, 2022
Snap’s business has been hurt recently on two major fronts: The first is Apple’s introduction of the “Ask App Not to Track” prompt, which an estimated majority of iPhone owners have opted “Yes” to, making it harder for companies like Snap to as effectively target their ads. The second factor is the broader economic downturn that has especially punished the stock prices of Snap and other cash-burning companies. Snap has been profitable in only one quarter since it went public in 2017.
The last time Snap did layoffs was in 2018, when it was still reeling from the fallout of a poorly executed Snapchat redesign. Since then, its user base has grown to 347 million daily users, surpassing Twitter.
But the company has struggled to build a significant ads business. And its attempts at selling hardware, like a $230 selfie drone, haven’t gone anywhere. In late May, CEO Evan Spiegel told employees that the company would sharply pullback on hiring and “find additional cost savings.”
https://discord.gg/GUPad7ETad