Todd Spangler NY Digital Editor Snap announced that it was cutting 20% of its workforce in a bid to contain costs — eliminating nearly 1,300 positions — and that the company will discontinue funding original series.
With the moves, Snap estimated it will save $500 million in cash expenses on an annualized basis relative to the second quarter of 2022.
That includes a $50 million estimated reduction in fixed content costs with the elimination of Snap Originals. Shares of Snap were up 10% Wednesday in mid-morning trading on the restructuring news, but the stock price is still down more than 75% year to date.
As part of a reorganization, Snap appointed Jerry Hunter, previously SVP of engineering, to the position of COO. He will lead monetization efforts, as well as growth, partnerships and content, AR enterprise, and small and midsize business teams, as well as continuing to lead the engineering teams that currently report to him.
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