Snap Inc. is going to lay off about 20 percent of its nearly 6,500 employees following weeks of planning, the Verge reported on Wednesday.
Snap’s cutting off will begin on Wednesday with the staff on Minis, small applications made by third-parties which run in the Snapchat app, affected the most, the report added. Zenly will also be affected by the workforce reduction. Zenly is a company Snap acquired in 2017 for social mapping.
A Snap spokesperson refused to comment to the Verge.
Notwithstanding, Snap’s Chief Business Officer Jeremi Gorman and Peter Naylor, vice president of the Americas, have agreed to join Netflix Inc. to help in leading its global advertising business starting in September, AdAge highlighted in a report on Tuesday. He also added statements from the executives and Netflix’s Chief Operating Officer Greg Peters.
Snap shares declined 7.3 percent in premarket trading on Wednesday before markets opened in New York. The stock declined 79 percent this year as the company has faced a slowdown in advertiser spending on the platform. Due to the uncertainty, Snap informed investors in July that it wouldn’t provide specific guidance for the current quarter.
For improving weather the business environment, the company has pointed it will focus on three main priorities:
– growing the user base.
– improving direct-response advertising business.
– how it measures ad spending and finding new sources of revenue.
