The general manager of Snap, the parent company of the Snapchat app, has announced a group restructuring that includes layoffs of more than 1,200 employees, or about 20 percent of the workforce.
“We are restructuring our company to focus on three strategic priorities: growing our community, growing our revenue, and augmented reality,” Evan Spiegel wrote in a letter to employees.
“Projects that do not directly contribute to these sectors will either be stopped or there will be a significant reduction in investment allocated to them,” added Spiegel, co-founder of Snap.
Spiegel said that projects such as Snap Originals (original series), Minis (embedded apps from third-party developers), Games (for mobile games) and Pixie (micropods) will be discontinued as part of the group’s restructuring.
With regard to the Zenli location app and the Voice music app, which were acquired by Snap through acquisitions, activity will be phased out.
Specialized website The Verge published information yesterday and reported that the company is laying off employees.
At the end of June, Snap, headquartered in California, had just over 6,400 employees worldwide.
At the time of the release of its quarterly results in late July last year, the group expected a slowdown in its earnings growth, which would push it to cut costs, and the group’s share of the New York Stock Exchange collapsed by about 40 percent at the time.
Like other social networks, Snap is paying the price for lowering the costs of advertisers, its main source of revenue, as well as for changing Apple’s rules requiring users to obtain consent before directing them to view ad content on their devices. .
Source: AFP