Why Snap Is Laying Off Two Dozen Employees as Problems Persist

Snapchat parent company Snap has laid off nearly two dozen workers.

The layoffs, which numbered 22, were across eight different divisions inside Snap, including content, engineering, and partnership, Cheddar reported on Thursday, citing people with knowledge of the company’s moves. Snap subsequently confirmed the layoffs to Cheddar on Thursday.

Snap has come under fire of late after announcing slowing user growth. A revamped app design for its popular Snapchat app, caught the ire of users who said they found its new look and feel confusing. Since September, Snap has laid off approximately 30 people as it tries to rejigger its business and find new opportunities for revenue growth.

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In a memo to employees this week, Snap CEO Evan Spiegel discussed the company’s challenges, according to Cheddar, which obtained a copy. He said that Snap needs to be “scalable” business. He added that building a “bigger” company is “not a competitive advantage.”

“The journey is long, the work is hard, but we have and we will consistently, systematically, out-innovate our competitors with substantially few resources and in far less time,” Spiegel wrote to the employees.

Snap has not commented publicly on the nature of the layoffs, their extent, and whether it plans more cuts.

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