The New York Times recently wrote an article on some changes Snapchat has announced. Many external factors have led Snapchat to make big changes to the company. The maker of Snapchat is laying off 1,300 employees (20% of the total number of employees), getting rid of 6 products, and appointing Jerry Hunter as the new chief operating officer (in place of the creator, Evan Spiegel).

A couple of different factors have affected Snapchat’s revenue. Apple’s change in privacy policy has affected Snapchat advertising. The rise in inflation and economic uncertainty have also played a role in Snapchats low revenue. The lack of advertising and economic obstacles has decreased sales for Snapchat drastically.

Snapchat hopes that laying off 20% of employees will prevent anything like this from ever happening again. They estimate to save 500 million with all these changes. They have already seen an increase of 8% from a year ago, which is not good but better than 0.