Snapchat's parent company, Snap, is reportedly planning to lay off approximately 150 employees as part of a restructuring effort, primarily within its augmented reality (AR) division, according to sources. Snap has not officially commented on the matter, but the company may provide more details later this week.
This decision follows Snap's move in August 2022, when it laid off 20 per cent of its workforce, amounting to roughly 1,280 employees out of a 6,400-strong workforce. At that time, Snap's CEO, Evan Spiegel, emphasized the need for the company to adapt to the changing market environment and lower revenue growth.
Snap's revenue in the second quarter of this year amounted to $1.07 billion, reflecting an increase from the previous quarter but a year-over-year decrease. In the first quarter, Snap experienced its first revenue decline as a public company, with a 7 per cent drop in sales compared to the previous year.
Looking ahead to the third quarter, Snap expects to have daily active users (DAUs) numbering between 405 million and 406 million. The company also mentioned that it is in a period of rapid transition from a revenue perspective, as it continues to work on improving its advertising platform while dealing with limited visibility of advertising demand.
In May of this year, Snap celebrated a significant milestone, with over 200 million monthly active Snapchatters in India. Among these users, more than 120 million were actively engaging with content on Stories and Spotlight, which are the fourth and fifth tabs of the Snapchat app.
Snap's recent restructuring efforts suggest the company's ongoing efforts to adapt to market conditions and enhance its financial performance.
Inputs from IANS