Snapchat parent company Snap CEO Evan Spiegel reportedly hired former Time Warner executive Kristen O’Hara as Snap’s Chief Business Officer, before changing his mind two days later.
“On a recent Friday, Kristen O’Hara got a major promotion: to become Snap Inc.’s chief business officer. Chief Executive Officer Evan Spiegel made it official by alerting her direct reports,” reported Bloomberg, Monday. “Two days later, he changed his mind, rescinded the offer and hired Jeremi Gorman, who oversaw ad sales at Amazon.com Inc.”
According to Bloomberg, Spiegel’s move “was jarring for Snap’s sales division, as O’Hara was well-liked,” and prompted O’Hara to leave the company.
“In her time here, Kristen had an immediate and positive impact on the company. She had a deep understanding of our business from the outset and forged strong client relationships that we will continue to build upon,” expressed Spiegel in a statement. “I will miss the leadership and enthusiasm she brought to the organization and wish her only continued success.”
Last week, JPMorgan downgraded Snapchat, and JPMorgan analyst Doug Anmuth declared in a note his doubt over Snapchat’s goal to bring in older users to the platform.
Snapchat’s goal to bring in an older demographic was revealed in the company’s survival plan, which leaked to the press this month.
“Most of the incremental growth in our core markets like the US, UK, and France will have to come from older users who generate higher average revenue per user,” proclaimed Spiegel in the plan. “Growing in older demographics will require us to mature our application… Many older users today see Snapchat as frivolous or a waste of time because they think Snapchat is social media rather than a faster way to communicate.”
“Changing the design language of our product and improving our marketing and communications around Snapchat will help users understand our value,” he continued, adding, “Aging-up our community in core markets will also help the media, advertisers, and Wall Street understand Snapchat.”
As previously reported, Snap and its product Snapchat have had a difficult two years, plagued with losses, scandals, and a seemingly unclear plan for the company’s future.
Snap has laid off over one hundred employees at the company in 2018 so far, and in February, the company’s value dropped $1.3 billion after one of the app’s biggest influencers, Kylie Jenner, insinuated that no one used Snapchat anymore.
A redesign of Snap earlier this year also prompted mass complaints, and led Snap to admit that it was a disaster in its survival plan.