Snap Inc, parent of personalized emoji creator Bitmoji said in a letter to its investors on Tuesday, it would cut 10% of its global workforce, owing to revenue acceleration and boost cash flow of the company.
Snap missed Wall Street analysts’ estimates for fourth-quarter revenue, as the Snapchat owner continued to struggle to compete against larger rivals for digital advertising revenue, and its shares fell 30%, reported Reuters News Agency.
The company joins the trail of tech giants who have been active in the trend of laying off their employees across various departments to manage their costs, fearing a possible economic recession.
The job cut affects the positions of over 500 employees of the company. As of December 31, 2022, Snap had about 5,288 full-time employees, of whom around 57% are engaged in engineering roles.
In August 2022, the company initially planned to reduce the headcount of its entire workforce by about 20%, with an objective of improving cost efficiencies, driving profitability and positive free cash flow.
Most recently, PayPal’s CEO Alex Chriss said the international payments company will reduce its workforce by about 9% in a letter to the employees, which was then posted on the company’s website, a week ago.
Snap said in 2024, the company will shift its focus toward user growth and strengthening engagement in its most highly monetizable geographies, including North America and Europe.
The Santa Monica, California-based company said in order to best position its business to execute on said priorities, it has made the difficult decision to restructure its team, while continuing investments in Snap’s highest priorities, including improved topline growth.
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