Snap has officially confirmed a strategic
Snap strategic workforce overhaul resulting in minor layoffs within its app development team, particularly impacting roles in product management. This move comes hot on the heels of Snap’s recent closure of its enterprise services division, operational for less than a year. The reorganization within the Product team, not directly tied to specific products, aims to streamline decision-making processes by reducing hierarchical layers, as communicated by Snap to TechCrunch.
Earlier reports from The Information and CNBC indicated the departure of Snap’s Vice President of Engineering, Nima Khajehnouri, with his last day set for December 1. Snap refrained from offering an official comment on the reorganization or associated departures.
Approximately fewer than 20 positions within Snap’s Product organization were affected by the layoffs, a minimal impact considering Snap’s robust workforce of around 5,000 employees. Snap clarified that the decision is part of a strategic reallocation of resources, emphasizing the goal of operational efficiency rather than workforce reduction for economic reasons.
In contrast to these reductions, Snap has been actively augmenting its team. Noteworthy hires include Eric Young, former Google VP of Engineering, appointed as Snap’s SVP of Engineering, and Darshan Kantak, former Google VP of search ads, serving as the new SVP of Revenue Product. Both roles report directly to Snap CEO Evan Spiegel.
In the advertising domain, Snap has made strategic additions, such as Patrick Harris, former Meta VP of global agency sales, assuming the role of President of Americas; Ronan Harris, former Google head of U.K., appointed as President of EMEA; and Ajit Mohan, former Meta head of India, joining as President of APAC.
Snap’s recent financial performance exceeded expectations, with revenue reaching $1.19 billion, surpassing the anticipated $1.11 billion. Adjusted earnings per share stood at 2 cents, contrary to the expected 4-cent loss. Global daily active users reached 406 million, slightly above the expected 405.7 million. Following this positive news, Snap’s stock initially rose from $9.70 to $10.91 but experienced fluctuations, reaching a low of $9.30 as investors responded to the company’s decision not to provide guidance for the upcoming quarter, citing concerns related to the “onset of the Middle East war.” As of today, the stock is trading at $11.30.
