Snap closing San Francisco office amid restructuring
Snapchat developer has multiple offices in the Bay Area, including a recently opened campus in Palo Alto
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Snap Inc. is closing its San Francisco office as the tech giant embraces a flexible work policy and seeks to cut costs.
"Our San Francisco location was lightly used by team members following our move to flexible work," a Snap spokesperson told FOX Business.
While employees are allowed to work remotely, Snap, the developer of social media app Snapchat, noted that some of its individual teams have scheduled in-office days. To continue to support San Francisco-based employees who want to go into the office, the company will offer access to a co-working space in the city.
Snap has multiple offices in the Bay Area, including a recently opened campus in Palo Alto. The spokesperson added that the company would continue to monitor its office usage by city.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SNAP | SNAP INC. | 12.11 | +0.30 | +2.54% |
SNAP SETS OFF ALARM BELLS IN AD-RELIANT SOCIAL MEDIA SECTOR
The move comes as Snap has seen a continued slowdown in its revenue growth due to a number of factors including platform policy changes, macroeconomic headwinds and increased competition.
"We are finding that our advertising partners across many industries are decreasing their marketing budgets, especially in the face of operating environment headwinds, inflation-driven cost pressures, and rising costs of capital," Snap said in its quarterly letter to shareholders.
A woman stands in front of the logo of Snap Inc on the floor of the New York Stock Exchange (NYSE) in New York City, NY, U.S. March 2, 2017. (Reuters/Lucas Jackson) | Reuters Photos
In the third quarter, the company reported revenue of $1.13 billion, up 6% year over year. Snap's net losses jumped 400% to $360 million, including restructuring charges of $155 million. In August, Snap announced plans to cut 20% of its workforce of roughly 6,000 employees as part of the restructuring.
Snap declined to provide revenue or adjusted EBITDA guidance for the fourth quarter of 2022.
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The news of the San Francisco office closing was first reported by Insider.
Shares of Snap are down approximately 83% year to date.