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Tuesday July 23, 2024

How to boost company productivity? Here's what Snapchat did

Furloughs made over past few months as company undergoes reorganisation

By Web Desk
November 11, 2023
Snapchat logo is seen in this illustration. — AFP
Snapchat logo is seen in this illustration. — AFP

There may be countless ways of increasing creativity and improving the decision-making process in a company but Snapchat came up with an unusual strategy to achieve better productivity.

According to The Information, the American multimedia instant messaging app has laid off "nearly 20 product managers" reportedly to speed up productivity.

As the company undergoes reorganisation, furloughs were made over the past few months. However, the scale of this reshuffling is quite smaller than last year when the company fired 1,300 employees.

A spokesperson of the company told Engadget that the job cuts were meant to expedite the decision-making process as the laid-off people were between the lower-level employees and higher-level managers.

Another possible reason for the layoffs is said to be reducing costs for the company to be used as resources for "core priorities."

As per the publication, Snapchat announced a 5% rise in its revenue during the third quarter of 2023.

The company's earnings rose to $1.19 billion for the first time in six months.

However, the ad business has not yet rebounded as Snapchat warned its investors of a downturn in advertising activities across social networks owing to misinformation influx amid the war situation in the Middle East.

It is pertinent to mention that the job cuts will not have any effect on Snapchat products or features.