Snap Lays Off 100 Employees, Mostly in Sales
This is the latest in a series of layoffs at the Snapchat parent company.
Layoffs are continuing at Snap.
The parent company of the messaging app Snapchat has handed out pink slips to about 100 employees, mostly in its sales division.
The Evan Spiegel-led company has been undergoing a reorganization since late last year and in recent months has trimmed its engineering and content teams. It also laid off some employees from its Spectacles hardware division last year.
"Over the past two years our company has grown a tremendous amount. Late last year we asked senior leaders across Snap to look closely at their teams to ensure they had the right resources and organizations to support their missions," chief strategy officer Imran Khan said in a statement.
Khan said: "As a result, new structures have been put in place for content, engineering, sales and many other parts of Snap. These changes reflect our view that tighter integration and closer collaboration between our teams is a critical component of sustainably growing our business. While this process has required us to make some really tough decisions, we believe that rigorously ensuring our team structure always aligns with our goals will make us stronger."
The cuts come as Snap has weathered a tough year following its spring 2017 initial public offering. The company has faced concerns over its ability to sustain long-term growth and build a large advertising business. Snapchat has also been facing criticism over a redesign that was meant to help broaden its appeal to a larger audience of users.
Snap signaled a path forward in February when it reported that it had grown revenue to $285.7 million during the fourth quarter of 2017 and reached 187 million daily active users.
But in recent weeks, two high-profile users — Kylie Jenner and Rihanna — have been critical of the app. Jenner, in a tweet, indicated that she doesn't use the app as much as she once did. Rihanna, meanwhile, was critical of the app after it allowed an add to run on its platform that made light of a domestic violence incident between her and Chris Brown. Both critiques caused the stock to drop significantly.
Snap shares were down less than 1 percent to just under $16 during midday trading on the NYSE.
Bloomberg was first to report the layoffs.