Parent company Snapchat is going to lay off 20% of its staff

Snapchat parent company Snap is going to lay off about 20 percent of its staff. The company has more than 6,400 employees worldwide. On Wednesday, the first employees will be informed of their dismissal.

Snap wants to compensate for its loss from the past quarter with the layoffs, writes Reuters, among others. The loss, which amounts to approximately $ 422 million, is due to, among other things, disappointing income from advertisements in the photo app.

“Unfortunately, given our current lower revenue growth, it has become clear that we need to adjust our cost structure to avoid continuing significant losses,” CEO Evan Spiegel wrote in an internal memo. who saw The Verge. “While we have built significant reserves and made efforts to avoid the downsizing of our team, we must face the consequences of our lower revenue growth.”

The number of layoffs will vary by department. For example, Snap is going to cut back on the development team of Zenly, the tracker app that the company bought in 2017. Another team expected to be layoffs is Snap’s hardware division. This one has worked on the Spectacles AR goggles and the Pixy camera drone. The latter was recently discontinued, wrote The Wall Street Journal earlier this month.

Two executives from Snap’s ad sales division are also leaving: chief business officer Jeremi Gorman and vice president Peter Naylor. They go to work in the advertising department of Netflix.