Snapchat: shares fall 40% after halting hiring

The actions of Snap they collapsed a 40% after the executive director Evan Spiegel warned in a note to employees that the tech company will miss its revenue and profit targets in the current quarter.

The company will also reduce hiring through the end of the year as it seeks to manage expenses, Spiegel wrote. Part of the letter was presented before the Securities and Exchange Commission.

“Today we file an 8-K, sharing that the macro environment has deteriorated faster and faster than we anticipated when we issued our quarterly guidance last month,” Spiegel wrote in the note. “As a result, while our revenues continue to grow year over year, they do so more slowly than we expected at this time.”

Snap cae en Wall Street

In April, Snap reported that they missed sales and earnings expectations for Wall Street. At the time, the company said it expected 20% to 25% year-over-year growth in revenue.

Additionally, Spiegel blamed the economy for the company’s losses. “Like many businesses, we continue to grapple with rising inflation and interest rates, supply chain shortages and labor disruptions, platform policy changes, the impact of the war in Ukraine, and more.” “said the CEO of Snap.

The company also plans to slow down its hiring for the rest of the year. Snap He plans to hire 500 more people this year, as opposed to the 2,000 new people he hired in the last 12 months. “We will also be evaluating the remainder of our 2022 budgets and leaders have been asked to review spending for additional cost savings,” the company memo said.

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