Snap shares pop on plans to cut 20% of staff as part of major restructuring
Snap shares rose as much as 15% after it confirmed reports it will cut 20% of its more than 6,000-person workforce and said it will scrap several projects, including its Pixy photo-taking drone and its lineup of Snap Originals premium shows.
CEO Evan Spiegel announced the moves in a memo Tuesday, and told employees the company needs to restructure its business to deal with its financial challenges. He said the company's current year-over-year revenue growth rate for the quarter of 8% "is well below what we were expecting earlier this year."
"While we have built substantial capital reserves, and have made extensive efforts to avoid reductions in the size of our team by reducing spend in other areas, we must now face the consequences of our lower revenue growth and adapt to the market envi...