500 Roles are Affected by the New Round of Layoffs Announced by Snapchat


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500 Roles are Affected by the New Round of Layoffs Announced by Snapchat

500 Roles are Affected by the New Round of Layoffs Announced by Snapchat

In 2024, Snapchat announces a new round of layoffs. According to this layoff, the company is going to cull its 10% global employees. The authority declared that the process will proceed to streamline the costs, re-focussing the business strategies.

According to a CNBC report, Snap will cut around 500 roles within the company concerning its new cost and strategic review.

Snap declared that they aim to reorganize their team to reduce hierarchy and promote in-person cooperation. They further declared that they are focusing on supporting their departing team members.

This is not going to happen for the first time. Back in August, Snap dismissed 1200 employees, 20% of its workforce. It’s been done to offset the losses in ad revenue and to streamline its operations, as declared by Snap officials. On the other hand, it has also been reported that Snap had shut down its AR development project in September, resulting in more job drops.

At the same time, it has also been indicated that Snap has shelved many other side projects. For example, the Pixy drone camera, a project by Snap has been shut down just after its four months of presence in the market. The only reason to stop all the rest of the projects is the lower income rate of the company.

However, insights declared that the company made positive growth in the third quarter of the last year. The idea of this thing we can take from the fact that the application gained many new users in the same period. The new audience came from the Rest of the World segment. It has been reported that the majority of the new users belong to India.

Another worth noting fact behind the positive growth of the app is that the overall revenue of the company increased by 5% year-over-year to $1.19 billion.

However, the problem for Snap is that the average revenue of the app per user is still lower than the previous numbers. The revenue is reduced within the key growth segment.

For its income, the app still heavily relies on the audience based in North America. However, the audience has not been increased in that segment. Now, Snap is working to reduce its infrastructure expenditures through a revised deal with Google and Amazon.

However, at the top end, there may be a level of crunch because the company remains adding users. The company needs to maintain its capacity and, ideally, its income needs to rise in step.

Moreover, after the iOS updates by Apple, Snap has already been hit hard but the systems are getting improved. On the other hand, Amazon – One of the biggest advertisers for Snap remarkably reduced its ad spend last year on the app.

Now, the point of discussion is whether these strategies of dismissing the staff and restricting the side projects will help Snap maintain its revenue or not. Stay tuned with Social Consulter to know what the next policies and strategies will Snapchat pursue to maintain its presence and raise its revenue.

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