22 employees have been recently laid off by Snap, a sign that the company is continuing to have a hard time with slow user growth. The cuts in their staff affected teams across the company. However, the content team was particularly struck hard. According to The Information, the content team of Snap has now consolidated operations in its Venice Beach, CA location, when the team was headquartered earlier in both Venice as well as the City of New York.
While Snap has been investing heavily in original content and Snapchat shows, there is high-level of uncertainty around how successful the company is. NBC Universal claims that its Stay Tuned show has more than 29 million viewers.The Rundown from the E! Entertainment Network generates more than $1 million in revenue from the app. However, it is difficult to verify the said numbers, as Snapchat does not disclose metrics and the company’s monthly active users. For example, CNN has killed its Snapchat show since “there wasn’t a clear enough path to make money.”
Snap has been having a difficult time in other areas too. The company had to reshuffle the firm’s hardware plans as Spectacles was not the success that the company thought it would be, and it is also planning a big app redesign in order to attract more users. The redesign is said to emphasise user-based content instead of branded ones. It will also split the messages and stories of the friends of the user into different sections.
According to a memo that was leaked to Cheddar, Evan Spiegel, the CEO of the company, stated: “The journey is long, the work is hard, but we have and we will consistently, systematically, out-innovate our competitors with substantially few resources and in far less time.”