In a move to hasten the company’s decision-making process, Snap has laid off 20 product managers. This sad move is also part of the reorganization process that the company is currently going through. Over the past few months, Snap has been cutting jobs within its ranks and reshuffling positions among its leadership.
The major aim of this process is to cut down costs incurred during the process of running the business. However, according to the company, the layoff of over 20 of its product managers will help to hasten its decision-making process. Currently, certain aspects of Snap’s business are suffering and need attention.
Well, things are not all bad, as the company has begun to see some growth after two quarters of decline. Snap’s third-quarter earnings have seen a significant 5% rise, while the brand’s ad business suffers. These new layoffs might not only cut costs down for the brand but also hasten the decision-making process across various departments.
Snap hopes that its recent layoff affecting 20 product managers will drive growth
You might be wondering how laying off 20 project managers can help hasten Snap’s decision-making process. Well if you have a look at the job description of a project manager you might see things from Snap’s perspective. However, the layoff of these workers is concerning and its possibility of driving growth is still questionable.
This isn’t the first lay-off process that Snap has undergone in recent months. Sometime last year, the social media service provider laid off 1300 of its staff. Just like with this new layoff the company stated the layoff from last year was a cost-cutting move and its effects were felt by users.
As a result of this layoff, a lot of features that were available to Snap users were put on maintenance. Users weren’t able to access these features for a while, as well as shows that got cancelled. After this layoff, the company was able to get back its balance and finally is seeing some growth in its business.
While this new layoff is smaller than the previous, it’s a major blow to the leadership chain in the company. Now, the gap between employees and managers is narrow, hence allowing each to work closely together. Decision-making will now be a bit faster as there are fewer project managers to go through before making a decision.
Snap is now struggling to grow its business earnings and boost its ad business. However, the ads business might be down for a while considering the recent events. Most advertisers have cut down on their ads considering the influx of misinformation due to the current conflict in the Middle East.