Snap Inc. has announced that it will be slowing down the process to increase the members of its core team since their quarterly income would not grow as fast as predicted in their recent financial report.
This news came in the form of a memo sent out by Snap CEO Evan Spiegel towards all company employees. In it, he informs them that the company would be making 500 hires throughout the year at the most. That is a much smaller number compared to that of last year’s when Snap grew by 2,000 people.
“While our revenue continues to grow year-over-year, it is growing more slowly than we expected at this time,” Spiegel says in the memo.
The Snap CEO also spoke to company investors during a JP Morgan Chase conference where he asked them to lower their expectations for this year. As he pointed out, they were dealing with “unprecedented circumstances”, citing the war in Ukraine and the changes in policy by Apple as the main reasons behind the miscalculation in revenue.
“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,” Spiegel added.
Snap is not the only company forced to change their plans for the year due to poor financial tidings. Both Meta and Twitter have also announced their intentions to cut back on their spending in order to weather the storm. In fact, the Mark Zuckerberg-owned company has significantly reduced its investments into Reality Labs, its sub-division that’s digging into the metaverse and everything surrounding it (VR/AR, etc.)
Spiegel has also said that Snap’s department managers have been tasked to “review spending to find additional cost savings.”