Snapchat will terminate a number of new projects and lay off 20% of its workforce.

As a result of the restructuring, which was anticipated following a year of subpar financial outcomes, around 1,200 staff would lose their employment.

A year ago, the corporation had a $130 billion (112 billion) value. It is now only worth around $20 billion (£17 billion).

According to Snapchat, the cost savings would amount to approximately $500 million (430 million). The company's CEO described the adjustments as "tough."

Despite cutting back in some areas, Snapchat's CEO Evan Spiegel stated that the company must now "face the repercussions of our weaker revenue growth and adjust to the market climate."

Mr. Spiegel claimed he intended to direct attention toward the business's traditional source of revenue, advertising.

It entails the abandonment of initiatives like mobile game development and Pixy, a tiny drone made specifically for taking selfies.

Since advertising accounts for the large bulk of their revenue, social media businesses like Snapchat, Meta, and Twitter have all had recent difficulties.

However, a lot of advertisers are hesitant to spend due to high prices and concern over the status of the global economy.

Snapchat has been impacted by Apple's privacy improvements from last year.

The modifications have made it more challenging for advertisers to monitor consumers on their phones, which results in less targeted advertising.

Because they have such a wealth of user data, social media businesses are able to charge so much to marketers.

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