Snap said it would not meet its revenue targets for the quarter and that hiring would be delayed.

Snap CEO Evan Spiegel said in an internal note that the company miss the profit target in this quarter. Snap will also slow hiring, a tactic that companies like Meta and Uber have adopted as a way to cut costs. While Snap continues to grow every year, Spiegel says the company is growing slower than expected due to the overall economic climate.

Snap confirmed the notes on TechCrunch. company also submitted 8K We expect Q2 2022 revenue and adjusted EBITDA to be lower than expected. Consistent with Spiegel’s comments on last quarter’s earnings, he wrote that Snap’s earnings were short due to inflation and the effects of the Ukraine war. Snap CFO Derek Andersen previously said that after the February invasion of Russia, many advertisers paused their campaigns, but within 10 days, most advertisers resumed their campaigns. snap stop advertising Russia, Ukraine and Belarus do not allow advertising of companies owned by the Russian state.

Spiegel also revealed that last year’s iOS privacy changes continue to affect the company. Given iOS users the option to opt out of off-app tracking, most users choose not to hand over more personal data to the apps they use, which will impact the advertising business of social apps like Snapchat and Facebook. crazy

“Managing your expenses responsibly will allow you to invest during this period and become stronger as a business. Going forward, we will take steps to realign our investment priorities. We continue to invest across our business priorities, but in many cases we are doing so at a slower pace than we planned given the operating environment,” Spiegel wrote to employees today.

According to the memo, Snap plans to hire more than 500 additional team members this year, in addition to the 900 offers that have already been accepted. This is a 41% increase in employment over the previous year, but not as many new hires as the company had planned as it is pushing for some planned employment through 2023. hundreds of people job Currently listed on Snap’s website, it includes 55 roles in augmented reality, a growing segment of Snap’s business. Spiegel’s letter stated that hiring for unopened roles would be slow, but did not explicitly state how the currently open roles could be affected.

Spiegel adds that if a current employee leaves the job, Snap will refill the position as long as the role is a high priority. Snap leaders were also advised to review their budgets to find ways to cut costs. Hopefully this doesn’t mean the layoffs that have plagued the tech industry over the past few weeks.

“Our most meaningful gains over the next few months will come as a result of increasing the productivity of our existing team members as we work together, helping new team members get to know Snap and learn how to reach their full potential,” Spiegel said. I wrote. . “Through many ups and downs over the past decade, you have made clear your ability to see through the short term and invest in our long-term success.”

Leave a Comment