Snapchat to lay off 20% of its staff

Aug. 31 (UPI) -- Snapchat plans to lay off approximately 20% of its more than 6,400 global employees, the company announced Wednesday.

The company expects to save about $500 million as it lets go of 1,200 employees, Snapchat CEO Evan Spiegel said in a statement.

"The scale of these changes vary from team to team, depending upon the level of prioritization and investment needed to execute against our strategic priorities," Spiegel said.

"The extent of this reduction should substantially reduce the risk of ever having to do this again, while balancing our desire to invest in our long term future and reaccelerate our revenue growth."

Snapchat also plans to nix its "Snap Originals" content, and instead prioritize content from creators and partners.

Snap Originals were company-funded original programming that included programs from gymnast Simone Biles.

The tech company has been hit hard by the stock market decline, as its share price has plummeted by more than 75% since the start of the year. Last month the company reported dismal sales growth, leading to Wednesday's decision.

"Changes of this magnitude are always difficult, and we are focused on supporting our departing team members through this transition," Spiegel said. "We are deeply grateful for their many contributions to Snap."