iWorld
Viacom Digital Studios International enters into worldwide deal with Facebook
MUMBAI: Viacom Digital Studios International has partnered with Facebook to create a series of short- and mid-form digital video series for the social media giant’s Watch platform. Under the new deal, Viacom’s digital content studio will shows in the UK, Germany, Spain, France, Asia and the Americas.
“The point I’d let you know that’s really exciting is that it’s a multi-territory, worldwide partnership with Facebook,” Viacom Digital Studios International senior VP and general manager Brendan Yam said. “We can create original, locally relevant programming."
While Viacom Digital Studios International will also make eight shows in Asia based on a partnership with MTV Asia, four of the series will premiere later this year and the remaining four will be developed next year.
The unit will create four shows in the Americas including stand-up comedy series Portugal Realengo, featuring vlogger Rafael Portugal and it will make spin-offs of MTV UK shows for Watch in Europe while the UK shows will be localised for Germany, Spain and France.
“By partnering with Facebook, we are harnessing the power of our globally-recognised brands and IP and leveraging local talent and production capabilities to drive engagement with digital-first audiences around the globe,” Yam added.
iWorld
Snapchat parent Snap cuts 16 per cent of workforce in AI-driven restructuring
The Snapchat parent is axing around 1,000 jobs and closing 300 open roles to save $500m, as artificial intelligence makes smaller teams the new normal
CALIFORNIA: Snap is snapping. The Snapchat parent has confirmed plans to cut around 1,000 employees, roughly 16 per cent of its full-time workforce, as it bets that artificial intelligence can do what headcount once required. Shares jumped more than 10 per cent in premarket trading on the news, a brisk vote of confidence from a market that has watched the stock shed about 31 per cent this year.
The restructuring, which also closes more than 300 open roles, follows pressure from activist investor Irenic Capital Management, which holds an economic interest of about 2.5 per cent in the company and has been loudly pushing Snap to tighten its portfolio and lift performance. The firm got what it asked for, and then some.
Chief executive Evan Spiegel told employees the cuts would reduce annualised expenses by more than $500m by the second half of the year. The company expects to incur charges of between $95m and $130m related to the layoffs, mostly severance, with the bulk landing in the second quarter. Staff in Snap’s North America team were asked to work from home on the day of the announcement.
The financial backdrop is not without bright spots. Snap expects first-quarter revenue to rise around 12 per cent to approximately $1.53 billion, broadly in line with analyst estimates. Adjusted core profit for the January to March quarter is forecast at about $233m, comfortably ahead of Wall Street’s expectation of $186.8m.
The harder question surrounds Specs, Snap’s augmented reality smart glasses subsidiary, which Irenic has urged the company to spin off or shut down entirely. The unit has absorbed more than $3.5 billion in investment and burns through approximately $500m in cash annually. Snap is pressing ahead regardless, with a consumer product expected later this year, even as Meta leads the market in the segment.
Spiegel is betting that leaner teams, smarter machines and a consumer AR play can restore Snap’s credibility with investors who have run out of patience. The redundancy notices have gone out. The harder restructuring, the one that requires a hit product rather than a headcount reduction, is still very much pending.
