{"id":162971,"date":"2022-08-31T15:27:59","date_gmt":"2022-08-31T15:27:59","guid":{"rendered":"https:\/\/precoinnews.com\/?p=162971"},"modified":"2022-08-31T15:27:59","modified_gmt":"2022-08-31T15:27:59","slug":"snap-to-cut-20-of-staff-cancel-projects-in-cost-cutting-effort","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/markets\/snap-to-cut-20-of-staff-cancel-projects-in-cost-cutting-effort\/","title":{"rendered":"Snap to cut 20% of staff, cancel projects in cost-cutting effort"},"content":{"rendered":"

(Reuters) -Snap Inc said on Wednesday it will lay off 20% of all staff and shut down projects, including mobile games and novelties like a flying drone camera, as high inflation and a deteriorating economy ravage the advertising industry.<\/p>

FILE PHOTO: The Snapchat app logo is seen on a smartphone in this picture illustration taken September 15, 2017. REUTERS\/Dado Ruvic\/Illustration\/File Photo<\/figcaption>

The cuts will help the company save an estimated $500 million in costs annually, Snap said.<\/p>\n

Snap shares rose 15% in morning trading, which reverberated across the sector. Shares in Facebook parent Meta Platforms Inc were up 5% and Pinterest Inc rose 6%.<\/p>\n

The company said it will focus on improving sales and the number of Snapchat users.<\/p>\n

The \u201cclear and defining action\u201d to refocus its business has reassured investors, said Paolo Pescatore, an analyst at PP Foresight.<\/p>\n

Analysts and investors have viewed Snap as an early indicator for trends affecting other social media platforms, as Snap is usually first to report quarterly earnings or provide business updates.<\/p>\n

Snap\u2019s warning in May that it would miss its revenue targets due to worsening economic conditions sparked a sell-off in social media stocks.<\/p>\n

Shares in Santa Monica, California-based Snap closed down 2.5% at $10 on Tuesday after The Verge first reported Snap\u2019s plans for layoffs, and AdAge reported the departure of two top advertising executives.<\/p>\n

Revenue growth so far in the third quarter is up 8% from the previous year, which is \u201cwell below what we were expecting\u201d, Chief Executive Evan Spiegel wrote in a memo to employees that was also released publicly on Wednesday.<\/p>\n

If that growth rate holds, it would be the slowest revenue growth Snap has had since becoming a public company in 2017 – a far cry from triple-digit growth rates it has recorded in previous quarters.<\/p>\n

Two of Snap\u2019s top ad sales executives – Chief Business Officer Jeremi Gorman and Vice President of ad sales Peter Naylor – are leaving to join Netflix Inc and build the streaming service\u2019s ad business.<\/p>\n

Gorman, a longtime advertising executive who previously worked at Amazon, was instrumental in building Snap\u2019s ad business, said Jasmine Enberg, principal analyst at research firm Insider Intelligence.<\/p>\n

Gorman and Naylor\u2019s departures come after Snap reported a disappointing second quarter, and it is facing more competition from TikTok, she said.<\/p>\n

\u201cSnap is clearly going through a tough time,\u201d Enberg said.<\/p>\n

\u2018FACE THE CONSEQUENCES\u2019<\/p>\n

Despite reducing spending in some areas, Snap must now \u201cface the consequences of our lower revenue growth and adapt to the market environment\u201d, CEO Spiegel wrote in the memo.<\/p>\n

Senior vice president of engineering Jerry Hunter will be promoted to chief operating officer and will be responsible for improving coordination between engineering, ad sales and product teams, Spiegel said.<\/p>\n

Snap and other social media platforms including Meta have all suffered from privacy updates that Apple Inc introduced on iPhones last year.<\/p>\n

These have made it difficult for digital ad sellers and advertisers to target ads to relevant audiences and measure their sales results.<\/p>\n

Closer collaboration between engineering and sales could potentially help Snap improve targeting and measurement of its ads.<\/p>\n

The restructuring of the ad sales division also includes three new president roles that will oversee the Americas, Europe, Middle East and Africa, and Asia-Pacific regions.<\/p>\n

Snap will also discontinue investment in its Pixy flying drone camera, just a few months after its debut in May.<\/p>\n

Source: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

(Reuters) -Snap Inc said on Wednesday it<\/p>\n","protected":false},"author":3,"featured_media":162970,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23054],"tags":[],"yoast_head":"\nSnap to cut 20% of staff, cancel projects in cost-cutting effort - Pre Coin News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/precoinnews.com\/markets\/snap-to-cut-20-of-staff-cancel-projects-in-cost-cutting-effort\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Snap to cut 20% of staff, cancel projects in cost-cutting effort - Pre Coin News\" \/>\n<meta property=\"og:description\" content=\"(Reuters) -Snap Inc said on Wednesday it\" \/>\n<meta property=\"og:url\" content=\"https:\/\/precoinnews.com\/markets\/snap-to-cut-20-of-staff-cancel-projects-in-cost-cutting-effort\/\" \/>\n<meta property=\"og:site_name\" content=\"Pre Coin News\" \/>\n<meta property=\"article:published_time\" content=\"2022-08-31T15:27:59+00:00\" \/>\n<meta name=\"author\" content=\"mediabest\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/precoinnews.com\/wp-content\/uploads\/2022\/08\/Snap-to-cut-20-of-staff-cancel-projects-in-cost-cutting-effort.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"mediabest\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/precoinnews.com\/markets\/snap-to-cut-20-of-staff-cancel-projects-in-cost-cutting-effort\/\",\"url\":\"https:\/\/precoinnews.com\/markets\/snap-to-cut-20-of-staff-cancel-projects-in-cost-cutting-effort\/\",\"name\":\"Snap to cut 20% of staff, cancel projects in cost-cutting effort - 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