After Meta, Snap slows down on hiring as revenue takes a hit

Snapchat's parent company, Snap Inc., informed employees that it would slow down on hiring new talent for the rest of the year. The announcement was made earlier this week while also informing investors about the slow revenue growth.

The internal memo that was shared by Snap's CEO Evan Spiegel stated that the company has been hit by the ongoing global economic and geographical situation. "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," the memo read. Spiegel further went on to say that the company will report revenue below the low-end of the guidance it gave investors for the current quarter.

For the reasons above, Snap plans to cut down on expenses and slow down hiring. That being said, the company will continue to hire for roles that it has already listed. Instead of getting about 2,000 new people onboard like it did last year, Snap will hire only 500 people for the rest of the year. Managers have also been asked to review spending to find additional cost savings.

"Our most meaningful gains over the coming months will come as a result of improved productivity from our existing team members, as we work together and help our new team members get to know Snap and learn how to contribute to their full potential," the memo further read.

Recently, Meta announced that it will freeze hiring across different departments as a measure to cut down costs. The company is also pulling back its investments in a number of products, including teams that it created to compete against the likes of Zoom. Employees will also not be able to receive internal transfers.

Meta has also informed its Reality Labs team - the one primarily created to build Zuckerberg's ambitious Metaverse - that it will deprioritise certain projects in favour of others. Meta's business has been hit by multiple sides. The rise of TikTok, Apple's data privacy changes on iOS devices and the ongoing Russia-Ukraine war are said to be some of the primary factors for the slow growth.