Saturday, November 11, 2023
American multimedia instant messaging app, Snapchat, has laid off "nearly 20 product managers" reportedly to speed up productivity, The Information reported.
A series of departures of employees came after the furloughs over the past few months as the company undergoes reorganisation.
However, the scale of this reshuffling is quite smaller than last year when the company fired 1,300 employees.
A spokesperson of the company told Engadget that the job cuts were meant to expedite the decision-making process as the laid-off people were between the lower-level employees and higher-level managers.
Another possible reason for the layoffs is said to be reducing costs for the company to be used as resources for "core priorities."
As per the publication, Snapchat announced a 5% rise in its revenue during the third quarter of 2023.
The company's earnings rose to $1.19 billion for the first time in six months.
However, the ad business has not yet rebounded as Snapchat warned its investors of a downturn in advertising activities across social networks owing to misinformation influx amid the war situation in the Middle East.
It is pertinent to mention that the job cuts will not have any effect on Snapchat products or features.