Snap Said to Be Cutting 20% of Workforce
SThe Verge reports that nap Inc. plans to cut 20% off its 6,500-plus employees after weeks of planning.
The report stated that job cuts will be made on Wednesday for the team responsible for Minis. These are small apps created by third parties and run within Snapchat. Zenly, which Snap purchased in 2017 for its social mapping services, will be also affected.
Snap declined to speak with the Verge.
Separately, Snap’s Chief Business Officer Jeremi Gorman and Peter Naylor, vice president of the Americas, have agreed to join Netflix Inc. to help lead its global advertising business starting in September, AdAge said in a report on Tuesday, citing statements from the executives and Netflix’s Chief Operating Officer Greg Peters.
Snap shares lost 7.3% during premarket trades on Wednesday morning before New York markets opened. This year, the stock fell 79% due to the slowdown of advertiser spending. Due to the uncertainty, Snap told investors in July that it wouldn’t offer specific guidance for the current quarter.
The company stated that it would focus its efforts on three priorities to weather any changes in the business climate: increasing the user base and improving the direct-response business. It will also improve how it measures advertising spending, and find new revenue sources.
—With assistance from Alex Barinka.
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