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Even when things get better for Snap, they aren’t that good

Reuters/Dado Ruvic
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  • Mike Murphy
By Mike Murphy

Technology editor

Published This article is more than 2 years old.

Snap can’t seem to catch a break. Copied almost daily by Facebook, struggling for profits, mocked by reality TV celebrities, and now this.

The parent company of Snapchat is preparing to lay off 10% of its engineering department, according to a report from Cheddar on Wednesday (March 7). This cut, which is apparently around 100 people, would be the company’s largest layoff to date.

This is the third round of departures in about a year for the ephemeral-messaging company. Last year, it laid off a few dozen in its hardware development and recruiting divisions, and then a couple dozen more across a number of teams later in the year. It’s still reportedly working on a second pair of Spectacles video-recording glasses, even though the first model was not a success.

Snap employs a little over 3,000 people. Engineering departments are the core of many modern tech startups, and it’s rare for them to face cuts before more vestigial departments within the company. Snap has been struggling for profits since it went public last year, and rushed out an overhaul of Snapchat’s design late last year that has been poorly received by some users, which could be behind the engineering exodus.

The company did have its first positive earnings report last month, posting smaller losses and greater revenue than analysts had been expecting. The company’s stock traded at its IPO price of $17 for the first time in over six months following the release of the results. Shares have started to slide from a high of about $18.50 this afternoon to around $18.

Snap wasn’t immediately available to comment on the report.

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