News

Pink Slips Handed Over to 100 Employees by Snapchat

Snapchat fires its employees second time in a month

Snap Fires Employees

Snap, the parent company of Snapchat is taking its restructuring process too seriously. This time, the company has fired 100 of its employees from the sales staff, which make its 3 percent of the total workforce. The new announcement follows the firing of 120 engineers, earlier this month. This layoff continues the series, unfolded since January this year. Previous cuts included 24 content-focused staffers in January and to add more agony to it, Tom Conrad, VP of the product also departed from Snapchat’s management board.

The social media and messaging company had about 3,000 employees in December last year. The recent cut has resulted in depletion of almost 8 percent of the total workforce. Snapchat claims the latest round of cutbacks are the result of a strategic review conducted at the end of last year. Surprisingly, the move has come after two years of rapid hiring by the company.

The uproar has come at the least expected time, as Snap is already facing a lot of questions due to its rollout of a much-despised redesign in the first quarter of 2018. Meanwhile, the disgruntled tweets from Kylie Jenner, Rihanna, and Chrissy Teigen has only made it worse for the company. The backlash took a toll on the stock price of Snapchat. On a separate note, Rihanna denounced an ad that seemed to took domestic violence lightly.

Last month, Snapchat relocated its employees to a business park in Santa Monica and subleased some portion of its Venice office. This move would have surely pulled out some burden from Snapchat’s revenue wing.

On the brighter side, Snapchat surpassed analyst expectations and added almost 8.9 million daily active users in Q4, nearly in a year. In the last quarter of 2017 also, the company performed better than expected earnings in terms of its growth and revenue. One of the major factors that fueled company's revenue growth was their programmatic move.

Although, the net loss of the company was $350 million in the fourth quarter of 2017 which stand out as almost double in the same period. On the other hand, Snapchat top rivals like Facebook and Instagram fared much better in terms of revenue and the total number of users, that too when Facebook is grappling with set-back like #deletefacebook movement.

Interestingly, this was the ripe opportunity for Snapchat to gain an edge over Facebook but with the current makeover, the company would find it really hard to compete at the highest level.

Last year, there was a significant decrease in Snapchat’s ad rates due to the introduction of automated ad sales by the companies think tank. But with some additional sales, it was able to make up for the losses. Software-driven sales further pushed original content on the app, and also cut down staffers who were responsible for crafting expensive ads.

Manish
Written By
Manish

With a mixture of literature, cinema, and photography, Manish is mostly traveling. When he is not, he is probably writing another tech news for you!

Want To Hire The Best Service Provider?
MobileAppDaily will help you explore the best service providers depending on your vision, budget, project requirements and industry. Get in touch and create a list of best-suited companies for your needs.
News

Instagram Accidentally Rolled Out Tap-To Advance Feed Feature

4 min read  

A couple of months back, a news took rounds that Instagram is testing a new way to move through posts that will bring a more efficient way of fast forwarding through stories to the feed and company did roll out the feature for a short period replacing the previous vertical scrolling with the horizon

News

Conversational AI In FinTech: How Chatbots Streamline UX?

4 min read  

Since the advent of information technology, we’ve been trying to eliminate or significantly reduce human involvement to speed up service delivery and increase productivity. The rapid evolution of cloud and cellular technologies like 4G and 5G technology have enabled streamlined automation of p

News

Amazon Pay Adds P2P Payments In India, Sets To Compete With Google Pay

4 min read  

The boom of unified payments interface (UPI) in India attracts another big enterprise to launch the UPI based payments services. Today Amazon announced that its Amazon pay has enabled person-to-person UPI based payments services. From today onwards, users can transfer money from bank to ban

News

How To Watch FIFA World Cup 2018 Online

4 min read  

The most awaited sports tournament of the year is right here, FIFA World Cup 2018. The event brings one of the most exceptional football players into one place, and you get a chance to cheer your favorite teams. The tournament began yesterday, i:e, June 14.The first match was between host nation

MAD Originals
MAD Originals

Cut to the chase content that’s credible, insightful & actionable.

Get the latest mashup of the App Industry Exclusively Inboxed

  • PRODUCTS
  • SERVICES
  • BOTH
Join our expansive network, build connections and expand your brand presence.