Snap Will Cut 20% of Workforce, Slash Investments, Add COO
- Company says 8% sales growth in current quarter misses goals
- Jerry Hunter is appointed COO while CBO leaves for Netflix
This article is for subscribers only.
Snapchat’s parent company is slashing staff and scaling back investments in straggling businesses, an attempt to rein in costs following a slowdown in ad revenue growth.
Snap Inc. is cutting about 20% of its 6,400-person workforce, Chief Executive Officer Evan Spiegel said in an internal memo sent to staff Tuesday. The change was necessary because revenue growth of 8% in the current quarter fell short of the company’s initial assumptions. Snap, which makes a social app popular with young people, has never reported single-digit quarterly revenue growth as a public company, according to Bloomberg data.