The axe is out again at Snap Inc (NYSE:SNAP), the maker of the Snapchat app, as another 100 of its workers have lost their jobs, sending shares down 8% to US$14.60 in mid-day trade.
Snap Inc has slashed about 100 jobs in advertising and sales, just weeks after the company revealed it would axe over 120 engineering jobs and months after it announced in January that it would eliminate two dozen jobs mainly from its content team, according to a report by the Los Angeles Times.
“Late last year, we asked senior leaders across Snap to look closely at their teams to ensure they had the right resources and organisations to support their missions,” Imran Khan, Snap’s chief strategy officer, said in a statement. “As a result, new structures have been put in place for content, engineering, sales and many other parts of Snap.”
After three disappointing quarters in the wake of its highly touted, but ultimately underwhelming public debut at US$17 per share, Snap reported a jump in quarterly revenues and users in the fourth quarter of last year.
Revenues at Snap beat Wall Street analysts’ expectations in the three months until December 31, rising by 72% to US$285.7mln and the group also saw its daily active users jump 18% to 187mln from the same period a year ago.
Snap’s stronger performance was owed in some part to its efforts to shift towards a self-serve ad buying software that operates as an auction in a similar way to rivals Facebook and Google.
Auction-based ads have allowed Snap to increase the number of ads for sale. Clients bought 90% of the company’s inventory via this new tool during the latest quarter.
The company plans to lure in more users by redesigning Snapchat to make it easier to use and fixing software bugs.