The Snapchat logo displayed on a phone screen is seen with a laptop in the background in this illustration photo taken in Krakow, Poland on August 10, 2022.
Jakub Porzycki | Nurphoto | beautiful pictures
Snap confirmed report It will cut its workforce of more than 6,000 people by 20%, and said it will eliminate a number of projects, including the Pixy photography drone and Snap Originals’ premium product line.
Evan Spiegel, Snap’s CEO, announced the moves in a memo Tuesday and told employees the company needed to restructure its business to deal with the challenges. finance. He said the company’s current annual revenue growth rate for the quarter of 8% is “much lower than what we had expected earlier this year.”
“While we have built up a substantial capital stock and have made extensive efforts to avoid downsizing our team by reducing spending in other areas, we now face the consequences. of lower revenue growth and adapting to the market environment,” said Spiegel. “We are restructuring our business to increase our focus on three of our strategic priorities: community growth, revenue growth, and augmented reality.”
Other projects the company launched include third-party apps Snap Minis and Snap Games. Spiegel said Snap is also beginning to “cool down” its Zenly map product and Voisey music feature, both inherited through acquisitions.
Snap also promoted Jerry Hunter from senior vice president of engineering to chief operating officer. Hunter will continue to lead Snap’s engineering unit, Spiegel said.
The company said it hired Ronan Harris, By Google Vice President and Chief Executive Officer of the UK and Ireland, becomes president of the Europe, Middle East and Africa region, a new position. Harris will join Snap’s executive team.
Spiegel said Snap is currently looking for president of the company’s Asia-Pacific and Americas regions, also two new roles.
“Changes of this magnitude are never easy, and we must act decisively to achieve this moment as a team,” said Spiegel. “I am proud of the strength and resilience of our team as we have overcome countless challenges to grow our business in a highly competitive industry during uncertain and uncertain times. ever had.”
In July, Snap stock jumped more than 25% after the company reported the second quarter result omitted both the top and bottom lines and said they would not provide guidance for the current quarter.
The company said at the time that it plans to “significantly reduce” its hiring rate and the rate at which operating costs are increasing.
Like other social media companies, including parent Facebook Meta, Pinterest and TwitterSnap indicates the confluence of factors harmed the company at the same time business. These include a weakening macroeconomic environment and AppleThe iOS 2021 update, makes it harder for social media companies to track users on behalf of third-party advertisers.
The rise of the short video service TikTok also poses a significant challenge for Snap and its competitors.
Snap said it was scrapping development of its Pixy drone after it was reported that the company had pause its work on the device. Drones are supposed to be a fun way for users to take pictures of themselves from multiple angles. Snap has been trying to build a consumer hardware business and announced $230 drones in April.
