Snap CEO Evan Spiegel announced this morning that the company behind Snapchat will reduce its staff by 20% as part of larger restructuring.
Snap has struggled financially for months. In May, Spiegel wrote in an internal memo that the company would miss its revenue goals for the second quarter of the year. Sure enough, even though revenue for the quarter was $1.11 billion, up 13% year over year, the company badly missed its previous guidance of 20% to 25% growth.
“Our forward-looking revenue visibility remains limited, and our current year-over-year QTD revenue growth of 8% is well below what we were expecting earlier this year,” Spiegel wrote in a company memo, which was also posted on Snap’s website. “For planning purposes we have modeled a range of outcomes, some of which assume that low revenue growth continues into next year, and we have built our 2023 plan to generate free cash flow even in a low growth scenario.”
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