Snap, the owner of the social media platform Snapchat, has been on the agenda recently, stopping many activities. After these steps, allegations that the company would make layoffs circulated. In a statement today, Snap confirmed that there will be layoffs. Here are the details!
Snap cuts 20 percent of its workforce
Layoffs in technology and social media companies have become a very common occurrence lately. Especially with the further development of technology, the need for labor has decreased. The last company to join this movement was Snap. The company is taking steps to layoffs and stop important projects as a result of the cost crisis.
The company, which has more than 6,400 employees, has confirmed the claims about the layoffs. However, Snap reported that it will cut 20 percent of its workforce. This corresponds to approximately 1300 people. Snap CEO Evan Spiegel said the last three-month revenue growth of 8 percent was well below his expectations.
At the same time, Spiegel added: “While we have built substantial capital reserves and have made extensive efforts to avoid shrinking the size of our team by reducing spending in other areas, we must face the consequences of our lower revenue growth and adapt to the market environment.”
The CEO also stated that they will continue to work to accelerate revenue growth. In addition, he emphasized that Snap’s long-term success must be ensured. In addition, Snap says it will receive four months’ compensation for employees laid off in the US and financial assistance to enroll in COBRA.
The CEO also states in his statement that there are three strategic priorities: growth, revenue growth and augmented reality. Pointing out that they went to restructuring to increase focus, he says that projects that do not contribute to these areas will be stopped. Allegedly, the company will save $ 500 million with these decisions.
So, what do you think about this vulnerability? Do you think Snap is right about the layoffs? Do not forget to share your views with us in the comments section!
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