As you can see that several social media platforms have resorted to subscription methods now to survive on the battlefield, you must be aware of some of those plans. Now, the matter is stretched too much, and controlling that much fluctuation is out of the hands of a popular social media organization “Snapchat”.
There are 347 million active users on Snapchat, but the company is still on the edge of its downfall. After knowing the reason, you may also get shocked by the shot. First of all, it’s not a small organization that exists in the industry, it’s a company that has been in several controversies in the past.
This time it has made the headlines, because of a loss in revenue it settled out of court with the loss of jobs for several employees of the company. But to make it clear for all readers, let’s see what happened and how several social media companies handled this situation.
Snapchat Is Now On!
Maybe some of you know that Snapchat has launched a subscription service in India worth ₹49/ month. Moreover, it’s a direct aim for revenue generation, which in particular became the reason for slow growth and layoffs globally.
All the subscribers in India will get the Snapchat+ badge on their profile to show it like a Celebrity’s ID. It seems like Snapchat is copying WhatsApp’s footprints. That’s because WhatsApp got enraged to unleash seven new features with its ongoing updates.
Just after that Snapchat+ came in upfront to collect the spotlight. In June, Snapchat launched Snapchat+ which is a collection of exclusive, experimental, and beta-type features that will be going to available on the platform, worth $3.99/ month. Snapchat claims that over 332 million people globally use this application every day. In India, it has over 100 million monthly active users.
After that, availability was fulfilled of this in:
- The US
- The UK
- New Zealand
- Saudi Arabia
- The UAE
“We have always enjoyed creating new features for our community, and historically we have tested new features in different ways, rolling them out to various Snapchatters and geographies. This subscription will allow us to deliver new Snapchat features to some of the most passionate members of prioritized unity and allow us to provide prioritized support”.
Not only Snapchat, but several social media apps started subscription services for payment after Apple unleashed a privacy feature with iOS 14.5. That feature allows users to turn off ad tracking for apps. Which is pretty amazing on one hand.
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Pavel Durov, CEO, Telegram (Founder)
“A subscription-based offer confirmed by the founder known as ‘Telegram Premium‘ which will be coming sooner after this month”.
Reports are Saying
During all this, several reports came in upfront that Snapchat is going to log off several employees off the charts, immediately. Moreover, it is almost at the stage to cut off the hiring process for a period of time, which seems necessary from the company’s point of view.
This Week, “The Verge”
Job cuts at Snap have taken place this week after the company posted disastrous quarterly results (Q2) in between future forecasts.
The report, This week
“It’s currently unclear how many of Snap’s more than 6,000 employees will be laid off, as managers across the company are still planning the full scope of the cuts for their teams,”
Snap which is the parent company of Snapchat has suffered much with a loss worth $10 billion, and it has already made the company’s self-esteem low that it suffered a quarterly loss in the previous month. Moreover, it again suffered a 52-week loss in shares.
The company’s report also shows a loss of $422 million in comparison to $152 million in the previous year. Therefore, it reduced hiring. Also, the announcement made by the company represents the slow process of hiring this year, as to maintain the company’s budget.
It shows that the companies are battling a hard time right now. Moreover, they all are being strict with productivity and efficiency, so the results come in the favor of the company to let it stand back on its feet. Learn more, grow more!
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