Snap announced it will cut 16% of its full-time staff and the departure of CFO Derek Andersen, whose last day is May 8 and will conduct his final earnings call on May 9.
CEO Evan Spiegel disclosed the changes via the company’s blog and communicated them to staff. The announcement marks significant leadership adjustments amid ongoing challenges in user growth and profitability.
Spiegel praised Andersen for his contributions, stating, “Derek has been a great partner to me and to our business… He has always done so with a keen eye to Snap’s long-term prosperity.” Andersen has been with Snap for nearly eight years and has played a crucial role in transitioning the platform to a viable business model.
Doug Hott, a long-time Snap employee, will succeed Andersen as CFO. He will oversee the company’s next major shift as Snap attempts to address stagnation in user growth while launching its new AR glasses, which are pivotal for its future strategy.
Snap’s advertising revenue is currently on the rise; however, the app has experienced stalled user growth, particularly in key markets. Recent reports indicate a decline in daily active usage of Snapchat in the U.S. and EU.
This stagnation may limit expansion opportunities. Furthermore, potential teen social media bans in several regions pose a threat to Snap’s business model, as this demographic is central to the platform’s user base.
The success of Snap’s AR glasses is critical, but early signals suggest they may face challenges competing with similar offerings from Meta and Apple. Should the AR glasses fail to attract consumer interest, Snap could face a reassessment of its broader strategies.
In conjunction with Andersen’s departure, Spiegel announced internal adjustments aimed at creating a more streamlined organization to bolster support for the company’s team and partners.
