Tag: snap
Should I snap up Persimmon shares at £14?
The Persimmon share price is now lower than it’s been since 2016. Roland Head wonders whether this could be a buying opportunity.
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Should I snap up easyJet shares at 350p?
The easyJet share price has collapsed this year. Is now the right time for contrarian investors to buy?
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Daily Crunch: Snap lays off one-fifth of its workforce after missing revenue and growth targets
Snap confirms it’s laying off around 1,300 employees
Snap has confirmed reports that it will lay off around 20 percent of its employees — approximately 1,300 people — to reduce costs. The company has also canceled most original Snapchat shows (save for the long-running politics and news series Good Luck America) and shelved other projects. For one thing, Snap said it’s putting games and mini-apps into maintenance mode. It will also sunset the standalone Zenly and Voisey apps to focus on Snapchat’s Snap Map and Sounds features.
On the hardware front, Snap is “narrowing our investment scope in Spectacles to focus on highly differentiated long-term research and development efforts.” In addition, the company has halted further development of its Pixy selfie drone only a few months after it started selling the device.
Snap said in a note to investors that the layoffs, project cancellations and other restructuring will save the company approximately $500 million in the annualized cash cost structure relative to the April-June quarter (for which Snap posted lackluster earnings results). The figure includes a $50 million reduction in content costs. The restructuring costs will be around $110 million to $175 million. Approximately $95 million to $135 million of that will likely be incurred in adjusted operating expenses, mostly in the current quarter.
“Unfortunately, given our current lower rate of revenue growth, it has become clear that we must reduce our cost structure to avoid incurring significant ongoing losses,” Snap CEO Evan Spiegel wrote in a letter to staff. “While we have built substantial capital reserves, and have made extensive efforts to avoid reductions in the size of our team by reducing spend in other areas, we must now face the consequences of our lower revenue growth and adapt to the market environment.”
Speigel noted that the company is restructuring around three pillars: community growth, revenue growth and augmented reality. “Projects that don’t directly contribute to these areas will be discontinued or receive substantially reduced investment,” he added.
Snap has been feeling the brunt of a broader economic slow down. Its share price has slumped by 80 percent this year (though it rebounded slightly following news of the layoffs and restructuring). So far in 2022, the company’s year-over-year revenue growth is eight percent, which Speigel said is “well below what we were expecting earlier this year.” However, the Snapchat+ subscription service is off to a positive start, with more than a million users signing up within the first month or so.
Meanwhile, company’s leadership team has a fresh look. This week, its two top advertising executives departed for Netflix, which will soon start offering an ad-supported tier. Snap has promoted its former senior vice president of engineering Jerry Hunter to the position of chief operating officer. It will also bring in Ronan Harris, Google’s UK and Ireland vice president and managing director, as president of its Europe, Middle East and Africa division.
Snap is cutting 20% of its workforce and discontinuing products to combat financial challenges
Blac Chyna shares snap of Dream’s first day of school after losing $108m Kardashian case
Snap reportedly plans to lay off around a fifth of its employees
Snap is reportedly preparing to lay off around 20 percent of its staff. The company, which has more than 6,400 employees, will start letting people go on Wednesday, according to The Verge. Snap declined to comment to Engadget.
There will reportedly be cuts among the company’s hardware division, which recently halted development on the Pixy selfie drone. The report suggests a group that was working on tools to help developers build games and mini apps on Snapchat will be among the hardest hit by the cuts. Social mapping app Zenly, which Snap bought in 2017 and kept running independently, is expected to be heavily impacted. The advertising sales team will also be restructured, according to the report.
It’s been a rough year for Snap, which has seen its stock price fall by 80 percent since January amid a broader economic slowdown that has affectedmanynotabletech companies. Snap has said it would look to cut costs while bringing in fewer new hires. The company posted weak earnings results for the April-June quarter, which led to its stock dropping by 40 percent.
One recent bright spot for Snap is the $4 per month Snapchat+ subscription service, which offers early access to new features, such as seeing who re-watched a story and pinning a friend to the top of the chat history. More than 1 million people signed up in the first month or so.
Snap plans to lay off 20 percent of employees
Snap is planning to lay off approximately 20 percent of its more than 6,400 employees, according to people familiar with the matter.
The layoffs, which Snap has been planning for the past several weeks, will begin on Wednesday and hit some departments harder than others, the people said. For example, the team working on ways for developers to build mini apps and games inside Snapchat will be severely impacted. Zenly, the social mapping app Snap bought in 2017 and has since run separately, will also see deep cuts.
Another team that will see layoffs is Snap’s hardware division, which is responsible for its AR Spectacles glasses and the Pixy camera drone that was recently canceled after being on sale for just a few months. The company’s ad…
Should I snap up BT shares at 153p?
BT shares have been falling in 2022. However, with a low price-to-earnings ratio and a good dividend, I think it could be a great addition to my portfolio.
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