Though Snap says it is committed to developing Spectacles, its augmented reality glasses, the company will no longer develop the Pixy drone. In addition to cutting jobs, Snap will try to mitigate costs by slowing production on Snap-funded originals, minis and games, hardware and standalone apps Zenly and Voisey. “We acknowledge that these changes may have a particularly serious impact on team members relying on work authorizations to live outside their home country, and we will provide these impacted team members additional support and flexibility to minimize disruption to their immigration status,” Spiegel wrote. The company will “tailor compensation and benefits to reflect local norms” for international workers.

will receive four months of compensation replacement, plus financial assistance to enroll in COBRA, Snap says. “For planning purposes we have modeled a range of outcomes, some of which assume that low revenue growth continues into next year, and we have built our 2023 plan to generate free cash flow even in a low growth scenario.” “Our forward-looking revenue visibility remains limited, and our current year-over-year QTD revenue growth of 8% is well below what we were expecting earlier this year,” Spiegel wrote in a company memo, which was also posted on Snap’s website. Sure enough, even though revenue for the quarter was $1.11 billion, up 13% year over year, the company badly missed its previous guidance of 20% to 25% growth. In May, Spiegel wrote in an internal memo that the company would miss its revenue goals for the second quarter of the year.

Snap has struggled financially for months. Snap CEO Evan Spiegel announced this morning that the company behind Snapchat will reduce its staff by 20% as part of larger restructuring.

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