Snapchat Is Gutting Its Staff To Weather Economic Storm

( Snapchat is reportedly cutting its staff by 20%, preparing to launch to ad-supported subscription tier. During an interview with Fox’s “Mornings with Maria,” tech analyst Pete Pachal discussed the platforms controversial decision.

He began by saying that Snapchat’s did not have a clear purpose like other social media platforms. TikTok, Twitter, LinkedIn, and Facebook, for example, all have clear purposes, but that Snapchat is “just kind of is there. It’s almost like extra it’s very similar to Instagram, but has sort of its own audience.”

He continued to say that “I think I don’t want to take too much away from Snap and that over the past few years it was essentially left for dead when Instagram started eating its lunch. And it’s actually it’s sort of found its audience.”

That’s a kind of weird thing to say, isn’t it?

The platform is geared mainly to those who are younger who are seeking to communicate. It’s picture and video oriented and features something called “streaks,” which has become a centerpiece of the application. As time has gone on, Snap has begun using advertisements in between something called “stories” to bolster revenue.

According to Pachal, the overall digital advertising market is getting cut, which is why Snapchat’s earning and returns have not been doing so well. But ultimately, he says, their cuts are the right move and indicative of what other tech companies are doing.

“So, you know, they’re actually doing a very smart move,” he said. “Now it’s a deep cut. When you say you’re doing 20% of your workforce. But they’re clearly very focused on making sure that that bottom line doesn’t keep going further and further down so that it becomes an existential threat for them. They’re hunkering down. They’re here to weather the storm. I think that’s kind of what you’re seeing in a lot of these tech stocks.”