Snap Inc (NYSE:SNAP) is reportedly planning to lay off around 20% of its more than 6,400 employees as the social media group battles with a drop in advertising demand.
The Snapchat owner is also restructuring its ads team, the Verge reported, with chief business officer Jeremi Gorman and Peter Naylor, the vice-president of ad sales for the Americas, leaving the company to join Netflix Inc (NASDAQ:NFLX).
High inflation and the economic slowdown have led to a stock sell-off this year and Snap’s share price has slumped nearly 80%.
The company said in May that it would slow hiring and cut costs.
In its second-quarter results published in July, the company said net losses nearly doubled to US$422mln. It did not provide guidance for the third quarter.
Chief executive Evan Spiegel said at the time that the company would focus on product innovation, diversifying revenue and investment in its direct response advertising business to address the ads slowdown, according to the Financial Times.
Snap shares were down over 7% in pre-market trade.