The problems plaguing Snap over the last year-plus haven’t gone away, and this week the company confirmed it’s laying off around two dozen employees. Snap sent an internal memo to all employees highlighting the need for a “more efficient and scalable” business model.” On top of dropping several employees, others are being asked to relocate from the New York City and London offices to its Los Angeles headquarters in an effort to strengthen the team’s efficiency.
A number of the affected employees come from the content division, according to Cheddar.
Snap’s decision doesn’t come as a surprise. Aside from going through financial struggles ever since going public early last year, the company is in the middle of rolling out a redesigned mobile app that changes the way Snapchat is used. The new version splits “social” and “media” quite literally. Over to the left is where friends communicate, and the right side has community-generated content. Moving forward there will be less of a mix between what users share and original programming from publishers.
With publishers no longer getting mixed in with everyday users, the content division won’t be as important. Snap would like to move Snapchat closer to a model where users have a single feed in which both friends and brands coexist. Original programming will still come from publishers, but they’re not going to have a dedicated section as they did before the big update.
If you still haven’t received the major redesign for Snapchat on iOS and Android, the app should be upgraded for all users by the end of March.
This latest round of layoffs follows the hardware division losing a dozen members in September and human resources losing nearly twenty recruiters in October. In 2018, Snap doesn’t plan to go on a hiring spree. Snap is more intent on watching its money as investors put pressure to grow the user base and turn a profit.
The company’s earnings report for Q4 2017 are set to be released on February 6, and we’ll be sure to pass along whatever news comes out of it. Snap isn’t expected to have changed its trajectory in a single quarter so don’t expect a turnaround just yet.