![]() Outside the United States, we will follow local processes required in each country and tailor compensation and benefits to reflect local norms with the intent to provide similar levels of support regardless of geography. In the United States, we will provide at least four months of compensation replacement, as well as financial assistance to enroll in COBRA, so that team members will have until the end of the year to find new opportunities while still receiving compensation and health benefits from Snap. ![]() Team leaders will notify their impacted team members as soon as possible and provide them with detailed guidance. The friendship and camaraderie we all share as a team make these changes particularly painful, and we will make every effort to treat our departing team members with the respect and gratitude that they deserve. We will miss the many kind, smart, and creative team members who have contributed to Snap’s growth and I am deeply sorry that these changes are necessary to ensure the long term success of our business. Overall, the size of our team will remain larger than it was at this time last year. The extent of this reduction should substantially reduce the risk of ever having to do this again, while balancing our desire to invest in our long term future and reaccelerate our revenue growth. The scale of these changes vary from team to team, depending upon the level of prioritization and investment needed to execute against our strategic priorities. We have also started the process of winding down the standalone applications Zenly and Voisey.Īs a result, we have made the difficult decision to reduce the size of our team by approximately 20%. We have worked thoughtfully and deliberately to find the right balance between focusing our investments while continuing to innovate, and we have made the decision to discontinue our investments in Snap Originals, Minis, Games, and Pixy, among other areas. Projects that don’t directly contribute to these areas will be discontinued or receive substantially reduced investment. We are restructuring our business to increase focus on our three strategic priorities: community growth, revenue growth, and augmented reality. While we have built substantial capital reserves, and have made extensive efforts to avoid reductions in the size of our team by reducing spend in other areas, we must now face the consequences of our lower revenue growth and adapt to the market environment. Unfortunately, given our current lower rate of revenue growth, it has become clear that we must reduce our cost structure to avoid incurring significant ongoing losses. The investments we have made in our business to-date assumed a higher rate of revenue growth based on our vast opportunity and our proven history of execution, including 2x growth in the size of the Snapchat community and 10x growth in trailing twelve month revenue since our IPO in 2017. For planning purposes we have modeled a range of outcomes, some of which assume that low revenue growth continues into next year, and we have built our 2023 plan to generate free cash flow even in a low growth scenario. While we will continue our work to reaccelerate revenue growth, we must ensure Snap’s long term success in any environment. ![]() ![]() Our forward-looking revenue visibility remains limited, and our current year-over-year QTD revenue growth of 8% is well below what we were expecting earlier this year. Thank you for your patience as we have worked through our 2023 financial planning and reprioritization process.
0 Comments
Leave a Reply. |