On Monday, Snap Inc. (NYSE:SNAP) CEO Evan Spiegel announced the departure of Chief Financial Officer Derek Andersen after nearly eight years with the company.
Doug Hott, who has served as the Snapchat owner’s vice president of finance, strategy, and corporate development, will succeed Andersen, Spiegel said.
CFO Exit Comes Days After Layoffs
Andersen will participate in his final earnings call on May 6, with his last day set for May 8, according to Spiegel’s internal memo. He credited him with guiding the social media firm through major challenges, including the pandemic, changes to advertising platforms, and broader macroeconomic volatility.
He noted Andersen’s departure comes as Snap charts a “clear path to net income profitability.”
The CFO change comes days after Snap said it will cut about 1,000 jobs as part of a broader restructuring to reduce costs and improve profitability, amid slowing growth and rising competitive pressure. The move came weeks after Irenic Capital Management pushed the firm to optimize its portfolio and improve performance.
Organizational Reshuffle For Profits
Snap is also restructuring several teams.
Workplace experience will move under Chief People Officer Scott Withycombe, and content will shift into the product organization led by Ceci Mourkogiannis.
“I believe these changes will create a more streamlined organization that is directly aligned to support our team, community, and partners,” Spiegel wrote.
What’s Going On With SNAP Stock?
SNAP shares closed slightly up at $6 on Monday, having fallen about 26% this year. Analysts expect the company to report first-quarter revenue of $1.52 billion, according to Benzinga Pro data.
Benzinga’s Edge Rankings shows a weak momentum score of 7.22, with a price trend indicating short-term strength but medium- and long-term weakness.
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