Snap CEO Evan Spiegel announced the news in a statement Wednesday, which was shared with CNN Business, saying the company is restructuring to focus on “three strategic priorities: community growth, revenue growth, and augmented reality.”
“As a result, we are sunsetting several projects, reducing the size of our team by approximately 20 percent, and announcing the promotion of Jerry Hunter to Chief Operating Officer,” Spiegel’s statement added.
The chief executive continued: “Changes of this magnitude are always difficult, and we are focused on supporting our departing team members through this transition. We are deeply grateful for their many contributions to Snap.”
“In the United States, we will provide at least four months of compensation replacement, as well as financial assistance to enroll in COBRA, so that team members will have until the end of the year to find new opportunities while still receiving compensation and health benefits from Snap,” he wrote.
He added that the “extent of this reduction” should “substantially reduce the risk of ever having to do this again.”