Snap lays off 20% of its workforce
Like other platforms, Snapchat suffers from the economic crisis.
The CEO of Snap, the parent company of the Snapchat application, has announced a restructuring of the group leading to the elimination of a fifth of its workforce, i.e. more than 1,200 people.
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, CEO and co-founder of Snap, in a note sent to staff members.
Activities that do not directly contribute to these sectors will either cease or be entitled to considerably less investment, he added.
The job cuts had been unveiled as early as Tuesday by specialist site The Verge.
As of the end of June, California-headquartered Snap employed just over 6,400 people worldwide.
< p class="e-p">The company thus interrupts its activities for Snap Originals (exclusive TV series), Minis (integration of third-party applications), Games (mobile games) and Pixy (miniature drone).
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Geolocation applications Zenly and music creation Voisey, acquired through takeovers, will also see their activities gradually reduced.
When publishing its quarterly results at the At the end of July, the group had already announced that the growth of its turnover was slowing down and that it was therefore going to have to reduce its expenses. The title had then collapsed by almost 40% on the New York Stock Exchange.
Like other social networks, Snap is suffering from a general reduction ad spend by advertisers, his livelihood. A regulatory change from Apple requiring the consent of users to be obtained before tracking them in their browsing for advertising targeting purposes partly justifies this decline in interest from advertisers.
Mr. Spiegel estimated on Wednesday that the 8% quarterly revenue growth figure from 2021 was well below what he [expected] earlier in the year.