However, the firm has failed to establish a large advertising business. And its efforts to sell hardware, such as a $230 selfie drone, have been unable. In late May, CEO Evan Spiegel informed staff that the business will drastically reduce recruiting in order to “achieve significant cost reductions.”
Snap isn’t the only company that has to make cuts: Twitter, TikTok, and many other internet companies have announced layoffs or suspended recruiting in recent months. Even Snap’s much bigger and more prosperous social media rival, Meta, has paused recruiting and cautioned staff that difficult times are coming.
