In the latest sign of struggles for social media messaging app Snapchat parent company Snap, the company is closing its only downtown San Francisco office space. The 33,000 square-foot space at 875 Howard Street is the only Snapchat office space in the city and will close by year’s end as part of a shift toward remote work.
This year has been tough for Snap Inc. the company, which went public in 2017 with a valuation of $24 billion, has seen its profits dwindle. In August, Spiegel announced layoffs of around 20% of the workforce—over 1,200 employees. Last week’s third-quarter earnings report revealed the company’s slowest-ever quarterly growth, with its net loss surging 400% to $360 million. This resulted in a 25% plunge in share price to $7.38 a share on Thursday; it’s since pulled back to around $8.30 Monday morning.
The San Francisco office closure is just the latest sign of trouble for Snap, which has struggled to compete with rivals such as Facebook, Instagram, and even newer messaging apps like TikTok. With the pandemic causing a decrease in advertising dollars and people spending more time at home, it remains to be seen how Snap will fare in the coming months.