Snap, the parent company of Snapchat, is reportedly planning to cut approximately 150 employees as part of its reorganization efforts. These job cuts are expected to primarily affect Snap’s augmented reality (AR) division. Snap has yet to comment on the report, but additional details may be released later this week.
Despite laying off 20% of its workforce in August 2022, Snap still struggles to demonstrate financial discipline and achieve sustained profitability, according to The Verge. During that round of layoffs, Snap CEO Evan Spiegel stated that the company had to address the consequences of lower revenue growth and adapt to the market environment.
In the second quarter of this year, Snapchat’s parent company generated $1.07 billion in revenue, marking a slight increase from the previous quarter but a decline compared to the same period last year. This decline represented Snap’s first revenue drop since going public. Looking ahead, Snap anticipates that daily active users will reach between 405 million and 406 million in the third quarter. However, the company noted that forward visibility of advertising demand remains limited.
In addition to its financial challenges, Snap has been focused on expanding its user base in India. In May of this year, the company celebrated surpassing 200 million monthly active Snapchatters in India, with over 120 million Indian users engaging with content through Stories and Spotlight.
Sources: The Verge, LatestLY