Snapchat Lays Off 100 From Advertising Division in Department Restructure

It's the app's third round of layoffs this year

Snap is rolling out a new structure in an attempt to turn around sluggish quarterly results. - Credit by Getty Images
Headshot of Lauren Johnson

After cutting jobs for roughly 120 engineers earlier this month and 22 staffers across the company in January, Snapchat is downsizing its staff yet again—and its latest round of layoffs targeted its advertising department. Snap is laying off 100 employees, which roughly equates to 3 percent of its total workforce.

Over the past couple of years, Snapchat quickly built an advertising business poaching sales execs from companies like Google, Facebook, NBC Universal and others to assemble a team as it began to go public. Now, it’s shedding part of that team and rolling out a new structure in an attempt to turn around sluggish quarterly results and operate more efficiently in content, engineering and sales.

The news comes as Snap rolls out an algorithm-like redesign that some users, advertisers and publishers have criticized as difficult to use.

“These changes reflect our view that tighter integration and closer collaboration between our teams is a critical component of sustainably growing our business,” said Imran Khan, chief strategy officer at Snap in a statement. “While this process has required us to make some really tough decisions, we believe that rigorously ensuring our team structure always aligns with our goals will make us stronger.”

The new sales structure splits Snap’s sales efforts into two buckets: Members of the ‘direct sales organization’ will serve Snap’s biggest advertisers (think film studios and TV brands, for example) while staffers under the ‘global online sales’ team will zero in on all other advertisers, including small businesses and mid-sized brands.

Direct sales will report to four people, depending on their region. Luke Kallis is the head of West Coast sales, while Sharon Silverstein handles sales for the central U.S. Brett Wein is responsible for East Coast sales, and Claire Valoti manages all international sales. The global online sales team reports to Radhika Kakkar.

In terms of non-sales teams, Snap’s advertising business is now structured under horizontal teams and will work on strategies, products and tools to grow Snap’s revenue. Those teams include a revenue product team (including product marketing and measurement staffers), a business operations team to create sales processes and tools and a global strategy partnerships team that is focused on forging deep relationships with agencies and major accounts.

@laurenjohnson Lauren Johnson is a senior technology editor for Adweek, where she specializes in covering mobile, social platforms and emerging tech.
Publish date: March 29, 2018 © 2020 Adweek, LLC. - All Rights Reserved and NOT FOR REPRINT