The social media company Snap recently announced it’s laying off about 1,000 workers — 16% of its employees. The company said these changes will reduce costs by more than half a billion dollars and help establish a path to net income profitability.
This move comes after one of Snap's investors, Irenic Capital Management, wrote a public letter to the company outlining what it needs to do to “save” the company and cut costs.
Snap has been a public company for nine years. It's had just a few non-consecutive profitable quarters. Sarah Kunst, a general partner at the venture capital firm Cleo Capital, explains more about when a company has to be consistently profitable.
“Irenic Sends Letter to Snap Inc. Co-Founder and CEO Evan Spiegel and Issues Presentation Outlining Actionable Steps to Unlock Value” from Business Wire
“Organizational Changes at Snap” from Snap
“Investors punish Zuckerberg as costly metaverse pitch falls flat” from Reuters
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