The US parent company behind Snapchat is cutting 10 percent of jobs worldwide. Snap thus joins other technology companies that have announced a round of cuts since the beginning of this year.
Like other social media companies, Snap is seeing less demand for display advertising. The company is trying to compensate for this by cutting jobs and stopping projects that are no longer considered a priority.
Four months ago, Snap announced that it would close a subsidiary focused on creating augmented reality services for businesses. This is the superimposition of virtual images on top of the ordinary world. With this, the company has halted its latest attempt to become less reliant on advertising.
Snap employed about 5,400 people as of September last year. A 10 percent layoff would result in a loss of approximately 540 employees.
According to Snap, the layoffs could take place until the second quarter of this year, because the company must comply with local legislation. In Europe, Snap has offices in Amsterdam, Berlin, Oslo and London.
