Snapchat & Fi announce workforce reductions as part of restructuring

Snapchat plans to lay off about 150 employees in its AR division, while Fi, the neobank, has cut 10% of its workforce in a strategic restructuring


Snap, the parent company of Snapchat, is reportedly planning another round of layoffs, with approximately 150 employees expected to be affected. This move is part of a restructuring exercise within Snap’s augmented reality (AR) division, marking the second round of layoffs this year.

Snap has faced financial challenges and investor concerns, leading to these job cuts. However, it’s important to note that this round of layoffs primarily targets Snap’s AR division and is seen as a strategic reorganisation rather than a complete shift away from AR strategies.

Evan Spiegel, CEO, Snap, initiated significant layoffs in 2022, affecting 20% of the workforce, as the company grappled with slower revenue growth and a changing market landscape.

While Snap’s revenue for Q2 this year improved compared to the previous quarter, it remained lower than the same period last year. In Q1, the company experienced its first drop in revenue since going public, with a seven per cent decrease in sales.

Neobank, Fi has cut its workforce by 10 per cent, letting go of 30 employees as part of a strategic restructuring. This makes it the second neobank, after Open, to conduct layoffs this year.

The bank’s restructuring reportedly aims to refocus on key growth areas, enhance core product features, streamline operations and make the future more sustainable. The departing employees will receive comprehensive support, including several months of severance, extended healthcare coverage and prolonged ESOP vesting.

After at first denying the layoffs, Fi has now confirmed the same. The company, which provides millennial-focused digital banking solutions, has raised about $147 million and was valued at around $520–550 million in July 2022.

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