The 1,200 employees losing their jobs are a result of Snap's loss in revenue over the year due to new changes in Apple's advertising policy and fears of a recession.
"While we have built substantial capital reserves, and have made extensive efforts to avoid reductions in the size of our team by reducing spend in other areas, we must now face the consequences of our lower revenue growth and adapt to the market environment," the statement from Spiegel said.
The company has lost nearly 80 percent of its value since the beginning of the year.
\u201cYesterday, #snapchat laid off 20% of its workforce. \nThe stock is up 14% since then. \nExactly why #corporates love this easy solution without regards to its human toll.\n#layoffs\u201d