The shares of social media firm Snap have plunged by 35%, in the wake of a widespread digital advertising slump.
The announcement came just one day after the firm announced it had laid off 10% of its global staff, culling around 530 employees.
Snap’s full year revenue was £3.6 billion ($4.6 billion) which it said reflected “a challenging operating environment”.
Subscribe to Marketing Beat for free
Sign up here to get the latest marketing campaigns sent straight to your inbox each morning
It narrowed its losses to £197 million ($248 million) from £228 million ( $288 million) the previous year.
It also described the conflict in the Middle East as a challenging headwind.
The shares of its rival Meta soared by 14% after it reported results that beat on both earnings and revenue.
In the letter to investors Snap said: “In order to best position our business to execute on these priorities, and to ensure we have the capacity to invest incrementally to support our growth over time, we have made the difficult decision to restructure our team”.
It added: “While this decision was painful, and we will miss our friends and colleagues, we believe these changes are necessary to achieve our long term goals”.
