Evan Speigel, CEO of Snap Inc. announceon Friday it said the company had made the difficult decision to cut its workforce by about 20%.
The layoffs come after the company experienced slowing revenue growth, slumping stock prices, and failing to meet its financial goals.
“Our prospects for earnings are still limited. And our current 8% year-over-year QTD revenue growth of 8% was lower than what we expected earlier this year.”
Snap Inc. will continue its restructuring to ensure it thrives in the highly competitive space where Instagram and TikTok dominate. in the restructuring process The company has cut its entire Web3 team, with Snap’s Web3 team leader Jake Sheinman announcing his retirement on Wednesday.
CEO Speigel said the restructuring was part of an effort to focus on three strategic priorities: community growth, revenue growth, and augmented reality (AR). Corresponding to these areas will be canceled or the budget is greatly reduced.
Snap Inc’s layoffs come after other tech companies such as Coinbase, LinkedIn, Meta, Apple, Google and Netflix had to cut their workforce due to rising interest rates in the current economy.
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