Snap lays off 100 employees in latest round of downsizing
The new round of downsizing is said to be focused on the advertising side of the business. This is also believed to be the final step in the ongoing restructuring process.Updated: Mar 29, 2018 18:33 IST
Snap Inc. is cutting another set of employees, focusing this time on the advertising side of the business after earlier trimming staff in engineering and content.
The cuts total around 100 workers, according to people familiar with the matter, and represent the final step in a restructuring process set in motion in the fourth quarter. The people didn’t want to be identified discussing internal details.
“Late last year we asked senior leaders across Snap to look closely at their teams to ensure they had the right resources and organizations to support their missions,’’ Imran Khan, Snap’s chief strategy officer, said in a statement.
“Tighter integration and closer collaboration between our teams is a critical component of sustainably growing our business.”
Snap, which operates the Snapchat app, cut around 120 engineers earlier this month, saying it wanted to maintain a high technical bar, according to an internal memo distributed at the time. In January, the company let about two dozen employees go on the content side of its business. Those moves fueled further uncertainty for staff at a company that’s lost key executives and released a widely criticised product redesign.
The rolling cuts are in part a response to over-hiring as Snap scrambled to build an advertising business and release new products, aiming to carve out a larger slice of a consumer tech market dominated by Facebook Inc. and Alphabet Inc.’s Google.
After Snap’s initial public offering a year ago, the company reported three straight quarters of disappointing revenue growth before finally delivering sales that blew past estimates in February. The company was changing the way its ads were sold, moving to an automated bidding process that allowed more kinds of marketers to participate, but dropped the average price of an ad dramatically.
First Published: Mar 29, 2018 18:31 IST