Snap cut several senior executives in its layoffs announced on Monday, aiming in part to reduce the amount of stock based compensation it pays out to senior people, CEO Evan Spiegel told staff on Monday. The company said it would cut its workforce by 10%, or around 550 employees. Included in the cuts were Sam Corrao Clanon, director of content; Ding Zhou, vice president of content engineering; and Konstantinos Papamiltiadis, vice president of platform partnerships, according to people familiar with the situation. Source/link: https://www.theinformation.com/articles/snap-targets-senior-leadership-in-sweeping-layoffs #snap #snapchat #layoff #layoffs #rif #execs #stocks #rsu #rsus #stock #tech
Doesn’t matter. Big execs get at-least 1 year of severance.
Damn
Someone post the non paywall?
The Information paywall is a tough one to crack
Snap cut several senior executives in its layoffs announced on Monday, aiming in part to reduce the amount of stock based compensation it pays out to senior people, CEO Evan Spiegel told staff on Monday. The company said it would cut its workforce by 10%, or around 550 employees. Included in the cuts were Sam Corrao Clanon, director of content; Ding Zhou, vice president of content engineering; and Konstantinos Papamiltiadis, vice president of platform partnerships, according to people familiar with the situation. The layoffs, coming a day before the company reports fourth quarter earnings, are the latest effort by the mid-sized firm to get its costs under control as it struggles with anemic revenue growth. Snap stock has lately been trading below its 2017 IPO price, reflecting investor disenchantment with Snap’s prospects. In a securities filing on Monday, Snap said the layoffs generally would “ensure we have the capacity to invest incrementally to support our growth over time.” But Spiegel told employees in a note to staff that the changes would also “help us address our elevated rate of dilution from stock-based compensation,” according to people who viewed the letter. “We believe these changes are necessary to reduce hierarchy, improve our speed of execution and promote in-person collaboration,” Spiegel wrote, according to one of those people. Steve Hwang, Snap’s longterm senior vice president of strategy and corporate development, will be taking over the partnerships teams for Snap’s content, mobile and augmented reality platform products, according to people familiar with the situation. The job cuts are the biggest since Snap laid off 20% of its workforce in August, 2022. Those cuts were primarily aimed at low-level people but the latest cuts are of senior people, aiming to balance out what had become a top-heavy organization. Senior people also earn more money, particularly in stock. The layoffs follow a slew of job cuts by many other tech companies. In some cases, such as Google companies have targeted senior people, who tend to earn higher amounts of compensation. Like a lot of smaller tech companies, Snap reports a high amount of stock based compensation in its quarterly earnings relative to its revenue, which severely depresses reported operating profit. For instance, in the first three quarters of last year, Snap reported nearly $1 billion in stock compensation expenses, after generating $3.2 billion in revenue. After taking into account the stock compensation expense, the company had an operating loss of $1.1 billion. Snap could improve its reported operating profit by reducing that expense, although most investors typically disregard the stock compensation expense when analyzing tech companies’ earnings anyway. Monday’s leadership cuts follow a cascade of senior exits over the past year. David Brinker, Snap’s vice president of content, partnerships, business and operations, told his team last week that he would leave the company in March, according to people familiar with the situation. Snap’s chief operating officer Jerry Hunter, vice president of product Jack Brody and vice president of engineering Nima Khajehnouri have left in recent months, as Spiegel has taken a more hands-on role in decision-making, The Information previously reported. Last November, Snap laid off 19 product managers as it sought to speed up the company’s decision-making, The Information first reported. As at Sept. 30, Snap said it had 153 million restricted stock units that had not yet vested, about 9% of its total outstanding share count. Two thirds of those were granted in the first nine months of last year, at an average value of $9.77 a share. Snap stock is currently trading around $16.46. The total amount of stock compensation which the company still has to recognize in its earnings statement amounted to $1.7 billion, the company said in a securities filing last October. That was expected to be recognized over two years. Snap has forecast revenue growth of between 2% and 6% for the fourth quarter, following a 5% increase in the third quarter.
Snap is bound to crash. We are waiting for "when" not "if" I have nothing against the engineers there, probably the smartest SWE I know but the business itself is bad. The product doesn't nearly generate enough revenue. The company offer too much comp. The expense are bad, the company isn't "growing". Talking from a stock perspective it's a long term short and no one is going to save it apart from VC who are booking losses for taxes purposes. If only they could get rid of so much stuff, get into saas subscription model, cut everyone's RSU by 50% and stop handing out refresher. It would still dilute the stock but still manageable
It just increased in value by 70% this year
After crashing 90% the year before
Why were headlines saying they laid off all remote employees. Fake news?
Probably both
Partially true. Remote people had a very high chance of being layoff .
Wow *slow clap *
Borderline racism there…
3/550 are senior execs but the title says they're targeted? Hmm..we need more of this. Senior execs should pay for the performance of the company.
Anyone who’s seen the “content” on Snapchat knows what a cesspool it is. About time these clowns were fired.
This is the way
Blaming their shitty earnings tmrw on them
Stock down big called it