Wednesday, August 31, 2022
SNAP announced a restructuring. They are cutting about 20% of the workforce and cutting many projects.
According to CEO Evan Spiegel's letter to the company, "We are restructuring our business to increase focus on our three strategic priorities: community growth, revenue growth, and augmented reality."
They will discontinue their "investments in Snap Originals, Minis, Games, and Pixy, among other areas....[and have] started the process of winding down the standalone applications Zenly and Voisey."
Also, according to reports in Ad Age, Market Watch The Verge and others, Jeremi Gorman, who oversaw Snap’s ad business, and Peter Naylor, a VP of ad sales at Snap, will be leaving Snap to help jump start Netflix's new ad supported offerings.
SNAP has been a leader in Mixed Reality (which they brand as "AR"), which (it seems like) they will continue to develop. But Ad Sales (with macro economy effects in question, and Apple's App changes in effect), are not growing fast enough to support too much overhead in the next 6 - 12 months.
EVAN SPIEGEL LETTER
AD EXECS: SNAP => NETFLIX