Co-founder and CEO of Snap Inc. Evan Spiegel holds up a Pixy drone while speaking at the Viva Technology conference dedicated to innovation and startups, at the Porte de Versailles exhibition center in Paris, France June 17, 2022.
Benoit Tessier | Reuters
Snap has made a series of layoffs as part of a reorganization aimed at streamlining the company’s social messaging.
Nearly 20 employees who held product management titles were laid off, Snap said in a statement Wednesday. The layoffs were not based on any specific product and were part of the company’s plans to increase decision-making speed and reduce costs, the company said.
Technology news publication The Information reported the layoffs earlier Wednesday.
The layoffs come after Snap recently reported third-quarter earnings in which its total sales grew 5% year over year to $1.19 billion, beating analysts’ expectations.
But Snap, like its bigger competitor Meta, he also warned investors that they have stopped advertising recently due to the current crisis in the Middle East. As a result, Snap said it would not provide official guidance “due to the unpredictable nature of war.”
Meta widened its guidance range in the wake of the Israel-Hamas war, with the company’s chief financial officer Susan Li telling analysts that it was “seeing softer cues at the start of the fourth quarter, correlating at the beginning of the conflict.”
Last summer, Snap said it would lay off 20% of its workforce which, at the time, consisted of more than 6,000 employees.
Snap said it currently has about 5,000 employees.
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