The company’s CEO, Evan Spiegel, announced the news of restructuring in response to the financial challenges the company faced in the past few months. According to the CEO, the current quarterly revenue growth rate of 8% is significantly lower than expected.
Spiegel said:
We are restructuring our business to increase focus on our three strategic priorities: community growth, revenue growth, and augmented reality.
The company scraps various projects, e.g. Snap Minis and Snap Games, and plans to will down map product Zenly and Voisey music functions, which were taken over through acquisitions.
Furthermore, the company reported the hiring of Ronas Harris, Google’s vice president, he will be working in the position president of the Europe, Middle East and Africa region. The company is currently hiring managers for its Asia Pacific and Americas regions.
In July, the company’s shares dropped after disappointing quarterly results, on the top of that no forecast was provided for the current quarter.
Key takeaways
- Snapchat lays off 20% of its workforce
- numerous projects are scrapped
- no forecast for current quarter
Source: CNBC
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