Highlights:
- Snap has cautioned investors that its revenue would not grow as fast as predicted for the current quarter.
- Snap will continue to hire for positions that have already been listed.
- Meta just stated that it would freeze recruitment across all divisions in order to minimise costs.
Snap Inc., Snapchat’s parent company, informed staff that it will slow down recruiting for the rest of the year. The statement was made earlier this week, along with an update to investors on the slow revenue growth.
According to an internal memo shared by Snap CEO Evan Spiegel, the company has been hampered by the ongoing global economic and geographical crisis. “Like many companies, we continue to face rising inflation and interest rates, supply chain shortages and labour disruptions, platform policy changes, the impact of the war in Ukraine, and more,” the memo stated. Spiegel went on to suggest that the company’s revenue will be below the low end of the guidance it gave to investors for the current quarter.
Also Read: Best Trucaller Alternative Apps
Snap intends to minimise costs and slow hiring for the reasons stated above. The company will continue to hire for existing positions. Instead of hiring 2,000 new employees like last year, Snap will only recruit 500 for the rest of the year. Managers have also been instructed to evaluate spending in order to identify more cost savings.
“Our most meaningful gains over the coming months will come as a result of improved productivity from our existing team members, as we work together and help our new team members get to know Snap and learn how to contribute to their full potential,” the statement continued.
Meta just stated that it would freeze employment across all divisions in order to minimise costs. The company is also reducing its spending on a number of products, including teams formed to compete with the likes of Zoom. Internal transfers will also be unavailable to employees.
Meta has also instructed its Reality Labs team, which was built solely to develop Zuckerberg’s ambitious Metaverse, that specific projects will be prioritised over others. Meta’s company has been struck from numerous angles. The rise of TikTok, Apple’s modifications to data privacy on iOS devices, and the continuing Russia-Ukraine war are cited as some of the key reasons for the slow growth.
