Snap, in an interview stated that in order to find new opportunities for revenue growth, the step was necessary. According to Snap, this is just part of finding the right people for the job. The main reason behind the layoffs was the lackluster growth of the six-year-old company. The news comes right after Snap’s restructure of Snapchat, which aimed at separating the brand-filled Discover section of the app, whilst also including communication with friends. With immense pressure from the investors to grow the user base, however the company has been struggling in key areas such as hardware. Adding to problem is the app redesign which the users found confusing and is affecting the traffic. The company has gone through several layoffs in 2017, mostly in the hardware division. Snap is currently renovating its Snapchat app to increase its lagging user growth by separating the social from the media and to make it less confusing to understand and use. Snapchat’s redesign is still rolling out very slowly, with no clear estimates of when to expect it, however the rumors indicate that the update isn’t being well received. It remains to be seen how the new redesign will affect growth and revenue, but Snap seems committed to its content goals.
