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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
Bloomberg business news
Snap Cutting 20% of Workforce, Cutting Back costsSource: Bloomberg
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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.