Snap Reportedly Plans 20% Job Cuts, To Scrap Several Projects

(RTTNews) - Snap Inc., the parent company of the instant messaging app Snapchat, announced plans to cut around 20 percent of its total workforce, reports said citing a memo. The company also plans to scrap many of its projects, including its Pixy photo-taking drone and lineup of Snap Originals premium shows, as part of its cost cutting measures.

The planned job cuts reportedly would impact more than 1,200 employees from its total workforce of around 6,400 global workers.

CEO Evan Spiegel, in a memo to employees, stated that the company is restructuring to deal with its financial challenges.

In its latest second quarter, the company had reported sharply wider net loss of $422 million and a 94 percent drop in adjusted EBITDA to $7 million, despite 13 percent rise in revenue to $1.11 billion.

Snap shares gained around 9 percent in the regular trading on Wednesday to close at $10.88. In after-hours trading, the shares declined 1.8 percent to $10.68.