Snapchat will cut 20 % of its workforce to save costs

The Snapchat platform indicated this week that it will reduce staff by 20 %, in addition to hiring a director of operations, after low growth during the current quarter

Snapchat announced this week a 20 % reduction in its workforce, of approximately 6,400 workers. The measure seeks to reduce costs and address poor performance during the current quarter.

In statements to Bloomberg, the platform indicated that in this quarter they achieved only 8 % growth in their income. The parent company made the decision to cut staff, as well as hire an operations manager.

It is noteworthy that Snapchat has never had a single-digit growth rate. This worries the directors of the company, which is now oriented towards cost reduction. In fact, any project or development that does not contribute to increased sales will be cut.

Snapchat shares fell as much as 79 % in New York, to reach US$ 10.90, which places it in the worst scenario since 2017. Without a doubt, a worrying scenario for all departments, in particular for the sector of advertising.

M.Pino

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Source: latercera

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