Snapchat Maker Continues Cost Cuts, 100 More People Laid Off
Snapchat maker Snap continued its cost-cutting efforts earlier this week, having laid off approximately 100 more employees, Bloomberg reports, citing people close to the company. The Venice, Los Angeles-based firm has been downsizing numerous divisions since September and has been widely reported to be planning its largest job cuts to date this spring, with the latest development being attributed to that new frugal business strategy. The new layoffs are understood to have solely affected the company's advertising unit responsible for generating sales, with Snap previously cutting roles in its content and engineering teams.
Industry insiders claim the new round of layoffs is also meant to be the final cost-cutting step in Snap's restructuring plan that the firm established late last year. The ephemeral messaging service provider acknowledged some downsizing took place in recent times, with Chief Strategy Officer Imran Khan saying the move will allow the company's units to collaborate more closely with one another and ensure the sustainability of Snap's business in the long term. The Snapchat maker employed approximately 3,000 people as of December 31, according to its consolidated financial report for 2017. That number is now understood to have been lowered by several hundred positions and is unlikely to grow in a significant manner over the course of this year. Snap already slowed its hiring in late summer as the first step in its cost-cutting endeavors.
All actions and policies that Snap opted to adopt in recent months are meant to accelerate its road to profitability which still appears to be a long one; the company lost $350 million in the final quarter of 2017 alone, despite that period being considered its most successful one to date due to almost nine million new people its flagship mobile app managed to attract. Co-founder and Chief Executive Officer Evan Spiegel is said to have recently decided to aim at somehow breaking even in 2018, though most industry watchers believe such a goal is unrealistic.
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