Snap CEO Evan Spiegel pissed off workers by calling layoffs an opportunity to prove ‘haters’ wrong: report
Snap chief Evan Spiegel reportedly angered the rest of his employees Thursday by framing the company’s recent sweeping layoffs as an opportunity for them to label the company’s “haters.”
Spiegel’s comments during a sweeping meeting with Snap employees came after the social media app shed about 20% of its workforce, or more than 1,200 workers, as it struggles with an extended stock slump as well as slumping revenue and user growth.
The Snap CEO emphasized that the round of pink slips, while a setback, was an opportunity for the company to “prove the haters wrong” going forward, sources familiar with his comments told Insider.
Spiegel’s comments reportedly upset workers the most during a time when morale at the company level was already “very low”.
“Kind of creativity and intelligence is the mantra at Snapchat,” a worker laid off after the cuts, according to the outlet. “That seemed to go out the window right away when things started to go wrong.”
Spiegel read prepared notes about job cuts before answering some pre-set questions from workers. The meeting allegedly “brought a little relief” to Snap’s workforce.
One of the people who attended the All Hands meeting said Spiegel also “shifted the blame” for Snap’s extensive hiring drive in the months before the layoffs, confirming that he had approved fewer new jobs requested by managers.
At the same meeting, Snap reportedly revealed that the remaining workers will receive a payment for their stock-based compensation later this year, with the exact terms revealed in the fall.
The post has been forwarded to Snap for comment.
Snap publicly confirmed the layoffs and issued a Spiegel memo to employees outlining the need for restructuring. The company also cut ties with two senior advertising executives.
“Unfortunately, given our current low revenue growth rate, it has become clear that we must lower our cost structure to avoid incurring significant ongoing losses,” Spiegel said.
“We are restructuring our business to focus more on our three strategic priorities: community growth, revenue growth, and augmented reality,” Spiegel added. “Projects that do not directly contribute to these areas or receive significantly reduced investment will be discontinued.”
Snap shares jumped about 9 percent after the company confirmed the layoffs.
The company’s stock is down about 75% this year during a period of intense competition between social media apps and a general slump in the tech sector. Macroeconomic conditions, such as a string of interest rate hikes by the Federal Reserve and uncertainty related to the Russo-Ukrainian war, have weighed on US companies for several months.
Snap joins other notable tech companies that have conducted layoffs this summer, including Netflix, Coinbase and LinkedIn. Other major tech companies, including Meta and Google, have put hiring freezes on hold.