According to The Information, Snap is going through a reorganization and has laid off “nearly 20 product managers.” The job cuts follow a string of departures and position shuffling over the past few months.
A company spokesperson told the publication that the layoffs were meant to speed up the company’s decision-making process, presumably because they’d be cutting out people between lower-level employees and higher-level managers.
They’re also meant to reduce costs for the company, which could then use the resources for “core priorities.”
In its recently announced third quarter earnings report, the company said that its revenue rose by 5 percent to $1.19 billion after two quarters of decline. However, its ad business has yet to recover, and it warned its investors that advertisers are hitting pause on their social media campaigns due to the current situation in the Middle East.
According to Campaign, brands have slowed down their advertising activities on various social networks because of the influx of misinformation regarding the Israel-Hamas war.
This round of layoffs isn’t directly linked to any product, though, and no features or offerings are being discontinued as a result. It’s also much smaller in scale than the company’s layoffs last year, which saw 1,300 employees lose their jobs. That time, Snap also canceled most of its original shows and put its games and mini-apps into maintenance mode.
Last summer, Snap said it would lay off 20% of its workforce that was, at the time, comprised of over 6,000 employees.
Snap said it currently has roughly 5,000 employees.
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