Snap plans to lay off 100 engineers in company's biggest job cut yet
- Snapchat parent company Snap Inc. is reportedly planning to lay off about 10% of its engineering staff in the company's biggest round of job cuts. About 100 jobs will be eliminated in the next week, Cheddar reported, citing anonymous sources.
- The cuts follow two prior reductions in headcount, including 18 employees in its recruiting division last year and two dozen more in January. Snap slowed its hiring rate by roughly 60% in Q4 2017 and reported having 3,069 employees at the end of the year.
- This comes as Snap has seen an exodus of top executives leave the company since it went public last spring, including leaders of the engineering, sales and product teams.
Snap's latest round of job cuts isn't particularly surprising in the context of past reports of management turnover and a slowdown in hiring across the company. The maker of Snapchat launched a company-wide system for evaluating employee performance last year to trim down on redundant roles and maximize efficiency as it finds its place in the market. CEO Evan Spiegel told managers in September that they'd have to make "hard decisions" about evaluating their teams heading into 2018, according to Business Insider. The company faces growing pains as it struggles with stagnant user growth and revenue and confronts greater competition from social media platforms like Facebook and Instagram that have copied some of the image-sharing app's most popular features in recent years.
While Snap's revenue beat Wall Street's estimates last year, the company didn't reach its internal goals that would have rewarded employees with cash bonuses, per Bloomberg. The company has tried to combat slumping employee morale with surveys and town-hall-like meetings that let employees air their grievances. The company last month started its own Snapchat Discover channel to provide internal transparency among employees, including profiles of new hires along with spotlights of various teams's work and achievements to develop a stronger company culture and retain employees in the long term.
Snapchat has 187 million users, but sporadic growth has led it to redesign its app in an effort to make it less confusing for a broader audience of users who had been confounded by its cluttered mix of messaging from friends, brands and publishers, alongside media features. The redesign split publisher and social influencer content from messages and posts from friends and family. The results of the redesign caused major backlash among consumers, even spurring a Change.org petition of 1.25 million people asking to reverse the update. Its official results will likely be disclosed when the company reports Q1 2018 results on May 8.