Snap layoffs derail investor confidence, again — but this top analyst remains bullish

The train wreck that is Snap’s 2022 continues to roll on.

The social media outfit and part-time camera company is reporting planning to layoff 20% of its more than 6,400 employees, The Verge first reported. Cuts are expected to begin on Wednesday.

Snap didn’t return Yahoo Finance’s request for comment on the layoffs.

Snap stock tanked 7% in pre-market trading on Wednesday and are down 78% on the year. The company’s ticker page was the most visited on the Yahoo Finance platform on Wednesday morning.

In a new note, veteran tech analyst Brent Thill of Jefferies stated that the layoffs suggest further challenging times for Snap amid tough competition from the likes of TikTok and slowing ad revenue.

Here’s what Thill had to say.

On the headcount reductions:

“Headcount reductions were not surprising, but a 20% reduction was more than we had anticipated. There have been several widely-reported articles mentioning Snap’s expected layoffs in areas such as Maps, Minis, and Hardware. These reports…

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