Snap boss announces 20% cut in workforce
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This decision should affect more than 1,200 employees worldwide.
The general manager of Snap, the parent company of the Snapchat application, announced on Wednesday a restructuring of the group, leading to the elimination of around 20% of the workforce, or more than 1,200 employees. “We are restructuring our business to increase our focus on three strategic priorities: growing our community, growing our revenue and augmented reality“Wrote Evan Spiegel in a note sent to employees.
“Projects that do not directly contribute to these sectors will be stopped or receive significantly less investment“, added the boss co-founder of Snap. The job cuts were revealed on Tuesday by the specialized site The Verge. At the end of June, Snap, headquartered in California, had just over 6,400 employees worldwide.
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Projects such as Snap Originals (exclusive series), Minis (integration of third-party applications), Games (mobile games) and Pixy (miniature drone) will be discontinued as part of the group’s reorganization, said Evan Spiegel. The geolocation applications Zenly and music creation Voisey, acquired through takeovers, will see their activity gradually reduced.
Growth revised downwards
When publishing its quarterly results at the end of July, the group had already warned that the growth of its turnover was slowing down and would therefore have to reduce its expenses. The title then collapsed by almost 40% on the New York Stock Exchange. Like other social networks, Snap is suffering from a general reduction in advertising spending by advertisers, its livelihood, as well as an Apple regulatory change requiring users to obtain consent before tracking them. for advertising targeting purposes.
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Evan Spiegel estimated on Wednesday that the figure of 8% quarterly revenue growth over 2021 is “well below what we expected earlier in the year“. Snap also announced the promotion of deputy general manager of engineering Jerry Hunter to chief operating officer. Ronan Harris, a Google executive, has been hired as president of the Europe, Middle East and Africa region and will start in October. On Wall Street, Snap’s stock was up more than 12% in early trading after dropping about 4% at the close on Tuesday.
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