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Snap Confirms Massive Layoffs to Engineering Team

By NexChange
Capital Markets

Despite surprising analysts with a much better-than-expected fourth quarter, Snap Inc. has confirmed to Recode that the company is laying off 120 engineers over the next few days.

Recode notes that Snap had about 3,000 employees at the end of 2017, which means that it it’s laying off roughly 4 percent of its total workforce – and 10 percent of its engineering team, according to CNBC. Snap laid off about two dozen employees in January in response to slowing user growth, but this latest round of layoffs is its largest round of cuts, as reported by Cheddar, which broke the story.

Jerry Hunter, Snap’s VP of engineering, sent an email to employees announcing the layoffs. In the memo, which was obtained by Recode, Hunter said the company would “deploy an organizational structure that aligns top talent with the most critical priorities, creates clarity around our mission, drives accountability, and rewards technical excellence in product development.”

Having high-performing, technically excellent, and appropriately aligned teams will be critical to building both a compelling product and a compelling culture for engineers. We want to unleash speed and productivity in our organization, while keeping a high technical bar. That required us to think carefully about the shape of the organization, and where each member of our team fits. As part of this, we have made the exceptionally difficult decision to exit just over 120 members of our team from the company. We are doing this after a thoughtful and respectful review of each team member and with appreciation for the many contributions they have made to Snap. All impacted employees will be eligible for a transition package that includes resources to help them with the next step in their career.

Snap’s stock price dipped slightly on the news, but mostly held steady on Thursday.

Photo: TechCrunch/Flickr

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