Snapchat’s parent company cutting 20% of staff as ad sales continue to dry up

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Some social media companies have criticized Apple's privacy crackdown for its effect on ad sales.

“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,” Spiegel wrote.

Last fall, Snap said its ad sales were being hurt by a privacy crackdown that rolled out on Apple’s iPhones, which raised investor fears about the app’s potential for growth. Most social media platforms rely heavily on advertising revenue, one reason that Facebook has been an outspoken critic of Apple’s recent changes to privacy controls.in the last quarter of 2021, there has been little good news from the company.

Snap’s staff has grown to more than 5,600 employees in recent years, and the company said even after laying off more than 1,000 people, its staff will be larger than it was a year ago.

 

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