Snap Inc (NYSE:SNAP) is facing a tough time after it announced major employee layoffs in March this year. Incidentally, two top-level engineers left the social media company quietly very recently adding to the already piling problems. Despite the investors losing faith in Snap, its CEO Evan Spiegel is quite confident that his company will bounce back.
Social Media Company hires two new executives
Recently, owner of multimedia messaging app hired two executives from Amazon.com, Inc. (NASDAQ:AMZN) and Huffington Post. The parent company of Snapchat hired the head of global advertising sales of Amazon, Jeremi Gorman as its new chief business officer. He will look after the global business solutions, customer operations, global online sales, and business marketing for the company.
The former CEO of The Huffington Post, Jared Grusd will join the social media company as its chief strategy officer. He will look after “content, global strategy, partnerships, and corporate development,” said Evan Spiegel. In September the chief strategy officer of the company, Imran Khan who served as the CEO’s right-hand man since 2015 departed from the company.
Even though the stock of the company spiked by 2% temporarily after the news broke out, they largely leveled out in a few days. SNAP went public last year and ever since then is struggling to fight competition as Facebook, Inc. Common Stock (NASDAQ:FB) is slowly conquering all the space in the messaging world.
SNAP to announce TQ 2018 Report
With many SNAP employees rumored to be eyeing an exit from the social media company, the CEO and co-founder of Snapchat remains positive. Gearing up to present the company’s third-quarter results, Spiegel seemed more determined to make Snapchat a profitable business by 2019. However, the stock is not supporting his vision.
While reacting to the rumors about SNAP employees’ leaving the company, Spiegel said that it is the year SNAP evolved from a product into a company. However, the transition has been extremely challenging. At present, Wall Street does not think that profit will roll out for the company anytime now or even in the future.