Not everything is rosy in social media land, it seems.
Snap joins rival platforms from Meta in cutting back on staff in light of disappointing financial results.
And it’s not a small cut, either.
The Verge reports some twenty percent of current staff at Snap could find themselves looking for other employment.
Cuts are pretty much across the board, too, as the company’s vaunted AR division is also being trimmed (we have reported on some of their projects here and here).
Among the list of headwinds currently impacting the company are its aggressive hiring during the pandemic and Apple’s crackdown on user data tracking on devices like the iPhone. The Verge also notes that, since going public in 2017, Snap has only turned a profit only one time.
As a result of a disappointing second quarter, the company isn’t offering forecasts for the third. That said, not everything is gloomy: Snap reported more users than Twitter at $347 million.
Like many other companies, Snap is somewhat enamored with augmented reality and even fielded a drone that they have since canceled. The Spectacles are still going strong but other hardware efforts might not have such a bright future. Snap isn’t the only one struggling here: We reported recently on Meta’s expensive foray into virtual reality and AR and, even with that company’s deep pockets, this kind of thing isn’t cheap – especially if you’re not making the kind of money that made the dream possible to start.
Of course, a growing user base bodes well for Snap. We’ll be sure to keep you updated.
Do you use Snap? Instagram? What are your thoughts on attempts at monetizing these platforms? Let us know in the comments.
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