The United States continues to deal with the negative ramifications of an ongoing recession. Despite claims to the contrary from the Biden administration, multiple signs of a recession (the twice-fallen GDP rate, multiple job layoffs, etc.) are here.
While the White House seeks to redefine what a recession really is, Americans are stuck with the fallout of what’s happening to this country. People are having to essentially rework their lifestyles to ensure their dollars go further than they have in previous times.
Many of the changes being made are not welcomed or comfortable; though they are necessary for people to survive.
However, the growing number of job layoffs is making things even harder. According to Washington Examiner, Snapchat has now joined the ranks of companies furloughing workers amid negative quarterly reports.
What’s Really Going on With Snapchat?
For weeks on end, Snapchat’s been planning furloughs as a means of cutting its own expenses. Now, amid a stock value drop, the social media site is removing about 20% of its current workforce.
This year, Snapchat’s seen an 80% value decline; therefore, the workers who are set to go first include those overseeing game and mini-app creations, along with the management of social map Zenly.
Snapchat layoff will affect about 1,400 workers.
— Paradise Research Group (@ParResGroup) August 30, 2022
There are other factors working against Snapchat, as well. Since Apple put forward an “Ask App Not to Track” option for its users, Snapchat is having a harder time targeting various companies with specific ads.
This is compounded by the $35 million Snapchat is paying out to settle a lawsuit concerning privacy breaches.
Naturally, with all these economic challenges happening at once, it makes sense that Snapchat is looking to reduce its expenses. Unfortunately, this is bad news for workers who were reliant upon these jobs in order to support themselves or their families.
More Layoffs to Come?
Many Americans have been warning that additional furloughs are on the way. There’s a popular school of thought which continues to warn that America hasn’t seen the worst of economic challenges to come.
With all the new spending from the federal government (the passing of the Inflation Reduction Act, Biden’s new student loan forgiveness initiative, etc.), all of this will take a toll on the nation’s economy.
Breaking news. Snapchat to layoff 20% of their staff. Yet another tech company facing mounting market pressure.
— JasonCline.eth 🥚 (@Jclineshow) August 30, 2022
If businesses are continuing to see profits decline and negative quarterly reports, they’ll have to make decisions about where they can most afford to cut their losses.
Sadly, this tends to come in the form of removing the workers who are least essential to their company’s operations.
What do you think of Snapchat laying off its workers amid ongoing economic problems? Do you believe even more furloughs are on their way later down the line? You’re more than welcome to share with us in the comments area.
This article appeared in New Vision News and has been published here with permission.