Snap Inc. lays off at least two dozen amid slowed user growth and engagement
Snap Inc. has laid off at least two dozen people across several divisions within the company, according to the Information, which first reported the news.
Snap has since confirmed these layoffs, which largely affect those on the content teams in the New York and London offices. Over a dozen of the 24 or so employees laid off today were part of the content team.
Snap tells TechCrunch that what’s left of the content division will now move to the company’s Valencia, California location and that it will continue to hire on the content team. According to Snap, this is just part of finding the right people for the job.
These layoffs may also not have been unexpected as they are part of a reorganization effort to cut costs due to the lackluster growth at the six-year old company.
Investors have been pressuring Snap to grow its user base but so far the company has fumbled in key areas such as hardware and a much anticipated app redesign which has had a delayed rollout to the United States and has worried some publishers as it may affect their traffic.
Thought Snap didn’t want to comment on when that redesign may arrive in the U.S., other reports pin it at the end of Q1 this year.
Snap has gone through several layoffs in the last year, letting go several dozen employees over a couple of rounds in the hardware division and in recruiting in lat 2017. At the time, founder Evan Spiegel announced in a letter the company would be slowing hiring efforts in 2018 and that managers would be asked to make “hard decisions” about teams that weren’t performing well in order to get the company back on track.
It remains to be seen how the new redesign will affect growth and revenue but Snap seems committed to its content goals.
Published at Thu, 18 Jan 2018 23:09:09 +0000