Snap will cut 20% of its workers.

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After a year of poor financial performance, the restructure would result in about 1,200 staff layoffs.

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Before a year had passed, the market valuation of the corporation was $130 billion. It currently has a value that is lower than $20 billion (or £17 billion).

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Snapchat expects these improvements to save $500,000 per year, according to a statement. The CEO realized the move would be challenging.

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Snapchat CEO Evan Spiegel said the company has cut spending in some areas but must now "face the ramifications of our poorer revenue growth"

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Mr. Spiegel said that he intends to concentrate the company's efforts on advertising, which is the principal source of income for the business.

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Because of this, we will have to abandon our ambitions for projects such as mobile gaming and Pixy, the little drone that was designed just for snapping selfies.

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Snapchat, Meta, and Twitter just crashed because their economic models rely heavily on advertising. This is why these firms failed.

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Despite this, many marketers are unwilling to spend money due to rising prices and economic uncertainty.

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Snapchat has been negatively impacted as a result of new privacy measures implemented by Apple in the previous year.

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