Snapchat’s parent company Snap Inc. He lays off 20% of his employees. The company said it was doing so to cut costs amid declining ad sales. To learn more about why this happens, check out the full article. The company’s CEO, Evan Spiegel, said the company’s sales were not great. “Unfortunately, given our current low revenue growth, it has become clear that we need to reduce our cost structure to avoid permanent losses,” Spiegel wrote. Currently, the business is not developing, so it is trying to increase income through reorganization and emphasis on social development.
Anything that doesn’t help those three areas, Spiegel said, the investment will either stop or be significantly reduced. Last year, Snap announced that its ad sales were suffering due to Apple’s privacy issues, according to recent reports. Because of this, investors began to doubt the company and its growth potential.
Advertising is one of the main sources of money for social media programs. That wasn’t possible when Apple implemented privacy controls, which is why it came under fire from Facebook. According to reports, Snap Inc. Coming back, they reported their last profit last quarter and there has been no improvement since then.
In May, after Snap lost half its value, an SEC report said, “The macroeconomic environment has deteriorated more than expected.” The company announced that it could not achieve the planned profit indicators. Snap is currently in a difficult position, so it plans to lay off some of its employees.
These are some changes in the management of the company. Jerry Hunter was promoted to CEO. The company’s focus is on the camera and how people can best express themselves through it. The company hopes to find new ways to invent cameras to improve people’s quality of life and communication. This company plays an important role in empowering people by giving them a way to express their feelings and emotions.