Meta Platforms Inc (NASDAQ:META) shares are trading higher Wednesday in reaction to Snap Inc’s (NYSE:SNAP) restructuring plan, which includes a focus on growth and augmented reality, as well as a 20% workforce reduction.
Snap provided plans to increase focus on three new strategic priorities: community growth, revenue growth and augmented reality. Snap said it will substantially reduce or eliminate any investments that are not directly related to the company’s new strategic priorities. Snap plans to cut back on Snap Originals, games, hardware (Spectacles) and other standalone apps.
In order to create a clear path to profitability, Snap plans to cut 20% of its workforce, scale infrastructure costs efficiently, increase content investments that drive community engagement, lower marketing spend and reduce real estate overhead.
Snap expects these strategic actions to result in $500 million in estimated reduction in its annualized cash cost structure relative to the second quarter.
Related Link: Snap Provides Restructuring Plans, Announces New Strategic Priorities: What Investors Need To Know
Meta Platforms operates an ecosystem of social media-related apps including Facebook, Instagram, Messenger and WhatsApp.
META Price Action: Meta has a 52-week high of $384.33 and a 52-week low of $154.25.
The stock was up 6.75% at $167.68 at press time, according to Benzinga Pro.
Photo: Gerd Altmann from Pixabay.
