Owner of Snapchat to cut 16% of staff

Snap -- the owner of social media platform, Snapchat -- is eliminating about one thousand full-time jobs, about 16% of its staff.

In an employee memo sent on Wednesday, Snap’s chief executive Evan Spiegel said the action was needed for the company to become “more efficient and profitable.”

In addition to the layoffs, more than three hundred open positions will also be closed.

Spiegel added he expects the job cuts to help reduce Snap's annualized cost base by more than half a billion dollars by the end of the year.