Snap cutting 20% of staff as ad sales continue to dry up

By MATT OTT
AP Business Writer

SILVER SPRING, Md. (AP) — The parent company of social media platform Snapchat said Wednesday that it is letting go of 20% of its staff as it reorganizes and tries to reduce costs in the face of declining ad sales. In a letter to staff, CEO Evan Spiegel said sales were not keeping up with earlier projections and that the company had to reduce costs to avoid mounting losses. The company has had one profitable quarter since going public in 2017. Snap shares gained about 10% on Wednesday, to $11 per share, after the announcement. They peaked at $83 less than a year ago.