Snap Lays Off Jobs, Plans To Slow Hiring
Social media company Snap Inc. has laid off jobs in its recruiting division as it looks to slow hiring in 2018.
The social media company said it had laid off 18 people in its recruiting division, which is an unusual move for a young company with ambitious growth plans and a probable reflection of tough competition from Facebook.
The cuts follow about a dozen layoffs in Snap's hardware marketing division last month. The company also plans to slow hiring next year.
Snap Chief Executive Evan Spiegel told employees in an email last month that the company would hire at a "slower rate" in 2018, and that managers would be asked to make "hard decisions" about employees who are not performing well.
The latest layoffs equal less than 1 percent of Snap's total workforce. A spokesperson said the slowdown in hiring was "logical" given how fast the company has grown. Snap expanded from 600 employees at the end of 2015 to 2,600 last quarter. The company did not say if additional layoffs are coming.
This is not the first time Snap has laid off employees in recent months.
In late September, Snap laid off roughly a dozen people supporting the hardware division that makes its Spectacles camera glasses last month.
People close to the company said that more cuts could be made as managers institute a new system for evaluating employee performance. Six-year-old Snap hasn't implemented a consistent way to track and evaluate employee performance to date, the people said.
Snap Inc’s Snapchat is popular among people under 30 who like decorating their pictures with bunny faces and other filters. But since Snap's $3.4 billion IPO in March, investor concerns have increased that the company might never become profitable.
The company’s stock is down roughly 28% in the past six months as investors question its ability to grow revenue under rising competition from Facebook.
Snap shares climbed 2 percent to $15.456 on Monday. They debuted at $17 in March.
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