Snap to Lay Off 20% of Its Workforce, Cut Some Projects

Snap, the parent company of Snapchat, is laying off approximately 20% of its staff, CEO Evan Spiegel confirmed in a memo on Wednesday. 

In second to job cuts, multiple projects have been scrapped, counting the camera-enabled Pixy drone, Snap Originals, Zenly and Snapchat’s games. Spiegel explained that the company is restructuring its commercial in light of slowed revenue growth, which has been roughly 8% year over year and is forecast to been low into next year. He stated Snap will focus on “community growth, revenue growth, and augmented reality” and pull back from anything that does not Come those goals. Its investment in and development of Spectacles AR hardware are Calm active, however.

Snap employs roughly 6,000 people, and Spiegel Famous it was a difficult decision to scale down its team size. As part of its reorganization plan, the business promoted Jerry Hunter to COO to oversee product, sales, growth and content. Snap is also seeking to fill some executive leadership roles under its new structure.

The Verge back reported that the company was planning to reduce its workforce behind dismal second-quarter earnings results.  

Social media companies like Snap have faced a refuse in digital ad revenue, making it difficult to monetize their platforms. Combined factors such as rising competition from rivals like TikTok, changes to Apple’s iOS and a Interesting economic environment have impacted Snap’s bottom line. Looking forward, Spiegel said the company hopes to avoid future layoffs when working to improve its overall revenue growth.