Snap to axe 10% of staff
February 6, 2024
Social media company Snap, owner of Snapchat, has announced plans to cut around 10 per cent of its work force – which will amount to some 500 employees.
“In order to best position our business to execute on our highest priorities, and to ensure we have the capacity to invest incrementally to support our growth over time, we have made the difficult decision to restructure our team,” the social media company said in a statement.
It is the second wave of mass redundancies from Snap in recent history, after it laid off about 20 per cent of its workers in August 2022.
Snap shares fell 4 per cent on the news.
Snap also announced financial results for the quarter and full year ended December 31st 2023.
“2023 was a pivotal year for Snap, as we transformed our advertising business and continued to expand our global community, reaching 414 million daily active users,” said Evan Spiegel, CEO. “Snapchat enhances relationships with friends, family, and the world, and this unique value proposition has provided a strong foundation to build our business for long-term growth.”
Annual Financial Summary
- Revenue was $4,606 million in 2023, compared to $4,602 million in 2022.
- Net loss was $1,322 million in 2023, compared to $1,430 million in 2022.
- Fourth consecutive year of positive Adjusted EBITDA at $162 million in 2023.
- Third consecutive year of positive operating cash flow at $247 million in 2023.
- Third consecutive year of positive Free Cash Flow at $35 million in 2023.
Q4 2023 Financial Summary
- Revenue was $1,361 million, compared to $1,300 million in the prior year, an increase of 5 per cent year-over-year.
- Net loss was $248 million, compared to $288 million in the prior year.
- Adjusted EBITDA was $159 million, compared to $233 million in the prior year.
- Operating cash flow was $165 million, compared to $125 million in the prior year.
- Free Cash Flow was $111 million, compared to $78 million in the prior year.