20% of Snap, the parent company of Snapchat, will be laid off (that is approx 1, 300 employees). The Snap Minis team, which has been developing games for the app, will reportedly be negatively affected. Employees at Zenly, a social mapping business that Snap purchased in 2017, will also be laid off.
Another group that will apparently be reduced in size is Snap’s hardware section, which created the Pixy drone camera and the AR Spectacles eyewear. The department did a fantastic job of creating notable gear, but it failed to generate any income. The announcement coincides with Jeremi Gorman, Snap’s own chief business officer, leaving for Netflix.
Snap has not yet verified the news, but it is not the only major digital business to lay off staff in an effort to reduce expenses in the face of a struggling economy.