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Yahoo Set To Invest $20 Million In Snapchat

Source: Peter Macdiarmid / Getty

Things are not looking up for Snapchat. No, not at all.

After trying to force a lame update on us, those running the social media messaging app made another grave error when they mocked Chris Brown‘s 2009 felony assault against superstar Rihanna. In an attempt to survive and restructure the company after all the backlash, Snap Inc. has decided to lay off about 100 employees. But this isn’t the company’s first round of “It’s not you, it’s me,” according to Bloomberg.

While this round of cuts focuses on the advertising side of Snapchat, 22 content employees were laid off in January, and 120 engineers were laid off earlier in March. The layoffs are reportedly in response to over-hiring.

Bloomberg states, “Snap, which operates the Snapchat app, cut around 120 engineers earlier this month, saying it wanted to maintain a high technical bar, according to an internal memo distributed at the time. In January, the company let about two dozen employees go on the content side of its business. Those moves fueled further uncertainty for staff at a company that’s lost key executives and released a widely criticized product redesign.

 The rolling cuts are in part a response to over-hiring as Snap scrambled to build an advertising business and release new products, aiming to carve out a larger slice of a consumer tech market dominated by Facebook Inc. and Alphabet Inc.’s Google.
After Snap’s initial public offering a year ago, the company reported three straight quarters of disappointing revenue growth before finally delivering sales that blew past estimates in February. The company was changing the way its ads were sold, moving to an automated bidding process that allowed more kinds of marketers to participate, but dropped the average price of an ad dramatically.”
Being publicly denounced by celebrities like Kylie Jenner and bad girl RiRi didn’t help. A word to the wise: the customer is always right.