Snap will cut 16% of its full-time staff and has announced the departure of CFO Derek Andersen. Andersen’s last day at the company will be May 8, with his final earnings call scheduled for May 9.
CEO Evan Spiegel shared the news via the company’s blog and also communicated it to staff. The cuts and Andersen’s exit highlight significant internal changes as Snap faces stagnant growth and the introduction of new augmented reality (AR) glasses.
Spiegel praised Andersen for his contributions over nearly eight years, stating, “Derek has been a great partner to me and to our business and has helped us navigate some of the most challenging periods in our history, including the pandemic, ad platform transition, and several macroeconomic shocks.”
Doug Hott, a long-time Snap employee, will succeed Andersen as CFO. Hott will manage Snap’s next significant shift amid issues of stagnant user growth and the anticipated launch of AR glasses, which are critical for the company’s future.
While Snap’s ad revenue is increasing, user growth has stalled, particularly in the U.S. and EU markets, where daily active usage is declining. The company’s performance update indicates serious challenges as potential social media bans for teens threaten to impact future growth.
Snap is heavily relying on its AR glasses for success, but early indicators suggest the product may have difficulty competing against offerings from Meta and Apple. Failure to make the AR glasses resonate with consumers may result in a reassessment of the company’s strategy.
In conjunction with Andersen’s departure, Spiegel announced internal changes aimed at creating a more streamlined organization to better support Snap’s team and community.
