[eMarketer] Layoffs at Snap could compromise its AR aspirations

Snap is laying off 20% of its staff of more than 6,400 employees in response to weak Q2 earnings and an 80% decline in its stock price, per Insider. The move is a setback for augmented reality (AR) products and services.

Snap’s layoffs are a precursor to a wider restructuring plan. CEO Evan Spiegel indicated in May that the company would cut back on recruiting and “find significant cost reductions.”

eMarketer opines while Snap’s losses are reflective of slowing ad sales—the net effect of Apple’s privacy restrictions—the general economic downturn will continue to bear down on the tech sector.

Snap, the industry leader in AR, now has to trade its future aspirations to weather its present tribulations. This will slow down overall AR advancement and adoption while leaving the door open for competitors to snap up AR talent.

Read the full eMarketer article here

www.emarketer.com