Snap confirms reports of up to 24 redundancies in a bid to 'scale internally'
Snap has confirmed reports of up to two-dozen redundancies, with the cutbacks reported to affect employees across some divisions in both the UK and US, as it aims to scale back costs amid stalling user growth.
The cutbacks come as Snap aims to transition to an organization that 'scales internally' according to a memo from Evan Spiegel
The move was first revealed in a memo obtained by Cheddar and later confirmed by a Snap spokesperson, with the US-based website also reporting that the overhaul will affect the headcount in its content, engineering and partnership teams.
The reports state that some employees in its New York City and London offices were asked to relocate to Snap’s headquarters in Los Angeles, California.
The internal note obtained by the news outlet quotes Snap chief executive officer Evan Spiegel as saying: “Having a scalable business model isn’t enough. We also need to have an organization that scales internally”.
News of the cutbacks comes the same day as the Snapchat owner also announced that is was doubling down on its app install offering, including a host of measurement tools, in the wake of its recent design overhaul.
Figures from eMarketer data suggest that Snap’s advertising revenue growth is improving at a healthy rate. However, its overall market share of digital spend remains small, with the research outfit forecasting that Snapchat will generate $1.18bn in net US ad revenue, up 83.1% over last year, but equating to a 1.3% share of the market.
This year, Snapchat is expected to generate $1.47 billion in net worldwide ad revenue, up 90.0% over last year. According to the figures, that gives Snapchat a 0.6% share of the global digital ad market, and a 0.8% of the worldwide mobile ad market.