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Snap CEO Evan Spiegel Tells Stunned Staff to Prove ‘Assholes’ Wrong

  • Snap is cutting about 20% of its workforce after hiring heavily during the pandemic.
  • New projects such as the Pixy drone and cryptocurrency have been shut down along with acquired apps.
  • The remaining employees joined a company-wide conference call on Thursday to hear more about the reorganization.

Snap CEO Evan Spiegel told stunned employees on Thursday that he sees a major restructuring of the company as an opportunity.

Losing about 20% of its co-workers in massive layoffs this week means Snap has a chance to “prove its assholes wrong,” Spiegel said in a Thursday call with workers. Sentiment didn’t pan out among employees who felt the company’s morale was already “very depressed,” these people said.

“Kind, creative and smart are Snapchat’s mottos,” said a worker affected by Wednesday’s layoff. Those who spoke with the insider requested anonymity because they were discussing confidential matters.

Spiegel also “deflected accusations” over Snap’s massive hiring of talent over the past 18 months. The CEO said he had previously asked managers in charge of hiring to keep headcount down when making annual plans, and had approved fewer hires than managers requested.

A Snap spokesperson declined to comment other than to mention that the total number of layoffs was “about” 20% of Snap’s employees.

One of the positive things that comes out of calling out Snap employees left behind is that they get an “addition” to their total compensation. Snap’s stock price plummeted by nearly $80, reducing its value. % of the last year. The exact amount of additional compensation will be determined by the company and distributed from October. Talk of additional his RSUs being distributed began earlier this summer when Snap’s stock price hit a historic low.

During the call on Thursday, Spiegel mostly read prepared remarks that repeated a letter he sent to staff Wednesday. The meeting was of little comfort to workers who said the depth of the layoffs was a “shock” and a “sudden” course change for the company.

Snap announced significant job cuts this week after telling employees at another meeting in early August that it was restructuring. Overall headcount cuts are between 20% and 25%, he said, but some departments have been hit even harder, with some being cut by up to 50%. two former employees of his said. In addition to layoffs, Snap is closing multiple projects and products. This includes investments in hardware like mini Pixy drones, a cryptocurrency payments division, and even entire apps he’s acquired like Zenly.

This change is an effort to reduce costs and generate cash flow during tough times in the digital advertising market. Snap is refocusing its advertising business, growing its core user base and developing augmented reality. This is an area we have been working on for several years.

Are you a Snap employee or someone with an insight to share? Contact Kali Hays at [email protected] via secure messaging app signal 949-280-0267 or via @hayskali’s Twitter DM. Communicate using non-work devices.

Get in touch with Tom Dotan ([email protected]) or Twitter (@cityofthetown).

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