Snap confirmed that a workforce reorganization has resulted in a small number of layoffs for the app maker, impacting people in product management roles. The layoffs were not directly tied to specific products, however, even though Snap recently shuttered its enterprise services division after less than a year. Instead, the reorganization of the Product team was focused on reducing layers and increasing decision-making speed, the company told TechCrunch.
The news of the reorg was previously reported by The Information and CNBC. The former reported that Snap’s vice president of engineering, Nima Khajehnouri, would also be leaving, and his last day would be Dec. 1. Snap did not offer an on-the-record comment on the reorg or departures.
We understand that less than 20 roles with Snap’s Product organization were impacted by the layoffs. For context, Snap is a sizable company with some 5,000 employees. The company suggested that its decision was related to focusing resources and speeding things up, rather than needing to reduce headcount for economic reasons.
In other areas, Snap has been growing its headcount. Snap recently hired a number of technical staff over the past few quarters, including former Google VP of Engineering, Eric Young, as its SVP of Engineering. Its new SVP of Revenue Product, meanwhile, is the former Google VP of search ads, Darshan Kantak. Both roles report to Snap CEO Evan Spiegel.
The company has also made a few advertising-related hires, including former Meta VP of global agency sales, Patrick Harris as President of Americas; former Google head of U.K., Ronan Harris as President of EMEA; and former Meta head of India, Ajit Mohan as President of APAC.
Snap’s most recent quarter saw the company beat on earnings with revenue of $1.19 billion ahead of $1.11 expected, and earnings per share of 2 cents, adjusted, versus an expected 4-cent loss. Its global daily active users were also at 406 million, above the 405.7 million expected. The company’s stock initially jumped from $9.70 to $10.91 on the news, but then hit a low of $9.30 as investors responded to the company’s lack of guidance for the quarter ahead, citing the “onset of the Middle East war.” The stock today is trading at $11.30.
Sarah Perez can be reached at firstname.lastname@example.org or (415) 234-3994 on Signal.
Courtesy by: TechCrunch