Snap confirmed the layoffs, first reported by Bloomberg. It’s the social media and messaging company’s latest round of cutbacks, after letting go 120 personnel in its engineering group earlier this month and laying off 22 staffers from its content team and other divisions in January.
The workforce reductions come after two years of rapid hiring, and are the result of a strategic review Snap conducted at the end of last year. Snap had 3,069 employees as of the end of 2017; a spokesman declined to provide a current headcount.
“These changes reflect our view that tighter integration and closer collaboration between our teams is a critical component of sustainably growing our business,” Imran Khan, Snap’s chief strategy officer, said in a statement. “While this process has required us to make some really tough decisions, we believe that rigorously ensuring our team structure always aligns with our goals will make us stronger.”
For the fourth quarter of 2017, Snap posted its best quarter as a public company after launching its IPO in March 2017. The company topped analyst expectations and reported the biggest net user additions — adding 8.9 million daily active users in Q4 — in more than a year. However, Snap’s net loss for the period doubled versus a year earlier, to $350 million for the fourth quarter of 2017.
Meanwhile, Snapchat has broadly rolled a major redesign of the app in the first quarter of 2018, and many users really dislike it. Disgruntled users include celebs Kylie Jenner and Chrissy Teigen, whose recent tweets about dumping Snapchat appear to have fueled Snap stock drops. Separately, Rihanna slammed Snap for an ad that ran in the app that made light of domestic violence.
Snap CEO Evan Spiegel warned investors last November that there’s “a strong likelihood that the redesign of our application will be disruptive to our business in the short term, and we don’t yet know how the behavior of our community will change when they begin to use our updated application.”