Snap expects layoffs to save $34M a year
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Snap expects layoffs to save $34M a year
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Re: Snap expects layoffs to save $34M a year
#2Why so many people to start with? Seems like they hired a ton of people.
Re: Snap expects layoffs to save $34M a year
#3Why so many people to start with? Seems like they hired a ton of people.
There was documentary posted here yesterday, The China Hustle. It showed Chinese companies showing fake transactions to boost revenue numbers. This could be that kind of scam, hire lots of people to show growth.
Re: Snap expects layoffs to save $34M a year
#4Why so many people to start with? Seems like they hired a ton of people.
There was documentary posted here yesterday, The China Hustle. It showed Chinese companies showing fake transactions to boost revenue numbers. This could be that kind of scam, hire lots of people to show growth.
You are right, it's definitely a possibility.
But as an aside, when I worked as Zenefits, we hired irresponsibly, but the intentions weren't to be deceptive; the mistake was thinking that the hockey stick curve would climb forever.
Re: Snap expects layoffs to save $34M a year
#5This is why the 10/20/30/40 vesting schedule which companies like Snap have is so problematic. Snap is laying people off and are saying that they expect to save a large amount of costs related to stock based compensation because of it (given they are a business I don't blame them for this line of thinking). However, from the laid off employee perspective this is pretty bad: 1) they worked hard to get Snap to this point but didn't get an equitable share of the rewards given backvested stocks 2) some of them might have just ended year 2 or year 3 of their tenure at snap and the big pay off was about to come and just like that they were laid off. Worse, being laid off destroys your negotiating position as you are trying to get a compensation package from your next company. An equitable 25/25/25/25 vesting schedule would have dealt with this much more fairly from the employee's standpoint.
Re: Snap expects layoffs to save $34M a year
#6Why so many people to start with? Seems like they hired a ton of people.
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Re: Snap expects layoffs to save $34M a year
#7So SNAP lays off another 7% of their workforce to save $34M a year whilst their CEO pockets $638M in compensation (3rd highest CEO payout ever) before they're remotely close to profitability. Not sure if company-wide layoffs and paying their CEO more are going to achieve their growth/profitability aspirations.
Re: Snap expects layoffs to save $34M a year
#834 Million a year for 220 employees? I know that includes office space, equipment, and benefits, but that still seems like a lot to me.
Edit: I must have had a brain fart when I wrote this, because I was thinking over a million per employee. Now it seems too low.
Re: Snap expects layoffs to save $34M a year
#9how many hundreds of millions did they give the CEO again?
Re: Snap expects layoffs to save $34M a year
#10This is why the 10/20/30/40 vesting schedule which companies like Snap have is so problematic. Snap is laying people off and are saying that they expect to save a large amount of costs related to stock based compensation because of it (given they are a business I don't blame them for this line of thinking). However, from the laid off employee perspective this is pretty bad: 1) they worked hard to get Snap to this poi…
If I was a prospective employee, I would probably write off ever working for Snap due to this story combined with the vesting schedule.
Last thing you want as a software engineer is coworkers under artificial pressure from worries of not performing enough to the point that they will get laid off & lose the upside of working for a public company offering stock - there are enough real world pressure situations I would rather save that for.