Snapchat Parent Company Announces Layoffs in Product Team Overhaul

Snap Inc SNAP confirmed a small number of layoffs within its product management team as part of a company reorganization aimed at streamlining operations and accelerating decision-making processes, TechCrunch reports. 

The Snapchat parent's layoffs were not linked to specific products, despite the recent closure of Snap's enterprise services division. 

The reorganization aimed to reduce management layers within the product team.

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The company, which employs around 5,000 people, indicated that the layoffs affected less than 20 employees. 

Snap has been expanding its workforce in other areas, notably hiring technical staff, including Eric Young, a former Alphabet Inc GOOG GOOGL Google VP of Engineering, as its new SVP of Engineering, and Darshan Kantak, another ex-Google VP, as SVP of Revenue Product.

Snap has also been bolstering its advertising team with high-profile hires, like Patrick Harris from Meta Platforms Inc META as President of Americas, Ronan Harris from Google as President of EMEA, and Ajit Mohan, also from Meta, as President of APAC. 

In October, Snap reported quarterly earnings of two cents per share, which beat the consensus of losses of four cents, a 75% decrease over earnings of eight cents per share from last year. 

The company reported quarterly sales of $1.19 billion, which beat the consensus of $1.11 billion, a 5.41% increase over sales of $1.13 billion in the same period last year. Daily active users (DAU) increased 12% year-over-year to 406 million.

Price Action: SNAP shares traded lower by 1.33% at $11.09 premarket on the last check Friday.

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