Until a few years ago, the Snapchat application was one of the most popular social media on the market. Over time, however, its position weakened, and Instagram and TikTok became much more important applications. However, the Snap owners are trying to stay afloat, which is not easy. A paid subscription plan was introduced to the application, and in order to reduce expenses, the company has now decided to lay off 1300 employees.
According to the information released, around 1300 employees out of work will represent an approximately 20% reduction in workforce at Snap. This decision, and the abandonment of some of its projects after internal restructuring, is expected to save around 500 million of dollars over the year. The market reacted quite positively to the published information, as Snap Inc. shares. They slightly increased after the announcement of internal restructuring was published. It is worth mentioning, however, that earlier during the year, the value of Snap shares fell by around 80%.