Snapchat announces that “it will face the effects of low revenue growth” and will adapt to the “market environment” with a series of changes that Evan Spiegel, the company’s CEO, acknowledges will be “difficult”.
Staff reductions in Snapchat will result in projects that were in development or in the planning stages having to be divested
And those changes have a number: about 1,200 Snapchat Employees Are Being Fired, which represents a percentage of 20% of the workforce. With this staff loss at Snapchat, they’ve acknowledged that: they will also have to give up some projects that were in development or in preparation. The goal, according to Spiegel, would be to focus on the main source of business: advertising revenue.
And it is that, as happens in other sectors, political instability and the deterioration of the global economy they freeze the investment intentions of many advertisers, which ultimately has major implications for platforms, such as Snapchat, whose main source of support is advertising.
Among the projects that have been abandoned are games for mobile devices or the short-lived Pixy, the autonomous drone that can take selfies of its ownerpresented last May and that just a few days ago it was communicated from Snapchat that it was no longer being sold and had support for it.
The decision came after a year in which the economic results have not been good for the social network, which has been reflected in its value. And it is that a year ago it was estimated at 130,000 million dollars, while Currently, this valuation barely reaches $20,000 million.. One small relief will be the announced staff cuts, which would save Snapchat an estimated annual cost of $430 million.
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