Snap, the parent company of Snapchat, is undergoing a reorganization and has recently laid off nearly 20 product managers, as reported by The Information. This comes after a series of departures and position shuffling within the company in recent months.
The layoffs are part of Snap’s efforts to streamline its decision-making process by eliminating layers between lower-level employees and higher-level managers. In addition, they are aimed at reducing costs and reallocating resources to focus on core priorities.
In its third-quarter earnings report, Snap announced a 5 percent increase in revenue to $1.19 billion, following two consecutive quarters of decline.
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However, the company’s ad business is still struggling, and it has warned investors that advertisers are pausing their social media campaigns due to the ongoing situation in the Middle East.
According to Campaign, brands have slowed down their advertising activities on various social networks due to the influx of misinformation surrounding the Israel-Hamas conflict. This has created a challenging environment for Snap and other platforms.
It is important to note that these layoffs are not directly tied to any specific product, and there are no plans to discontinue any features or offerings as a result.
Furthermore, this round of layoffs is significantly smaller in scale compared to last year’s layoffs, which affected 1,300 employees.
Last year, Snap also made significant changes to its content offerings, canceling most of its original shows and putting its games and mini-apps into maintenance mode.
