Snap announced the restructuring and reduction of 20% of employees
[ad_1]
On Wednesday, the American company Snap, which owns the social network Snapchat, informed on plans for restructuring and layoffs of 20% of employees. Now the company employs about 6 thousand people. The restructuring includes the closure of several projects, including the Pixy pocket photography drone, Snap Games mobile games, and the Snap Originals mobile viewing show. Snap also reported a downgrade in current quarter guidance, with the company expecting 8% revenue growth, worse than its own earlier expectations.
As the head of Snap, Evan Spiegel, during the restructuring, the company will adhere to three strategic priorities: community growth, revenue growth and the development of augmented reality. The company will also be phasing out the location-sharing service Zenly and music app Voisey that it bought a few years ago, Spiegel said. Snap also announced leadership changes. Vice President of Engineering Jerry Hunter will become COO, retaining his former position. In addition, the company has hired ex-Google executive Ronan Harris as director of EMEA (Europe, Middle East and Africa).
Snap, like other social networks, has recently experienced a drop in advertising revenue in the face of geopolitical instability, increased competition and other negative factors. In May, Snap already reported a negative outlook for the second quarter, after which its shares fell sharply. In general, since the beginning of the year, the company’s shares have fallen by 77%. On Wednesday, after the release of the announcement, Snap’s shares rose more than 10% before the start of trading.
[ad_2]
Source link
