Snap, the parent company of Snapchat, has said that its current layoffs of approximately 220 employees will save $34 million (roughly Rs. 221 crores) annually in wages and taxes, in addition to a one-time advantage of $31 million (approximately Rs. 201 crores) associated with stock-based comp forfeitures. Snap made the revelation in a Securities and Exchange Commission filing, tech site Variety reportedlate on Saturday.
Earlier in the week, Snap confirmed that it laid off about 100 workers, with the reductions mostly affecting its sales team.
This third round of layoffs came following Snap cut the tasks of a few dozen workers across its hardware and recruiting divisions in 2017. This was followed by 2 dozen more cuts in January.
During the exact same period, Breeze instituted a company-wide system for assessing employee performance and CEO Evan Spiegel then told supervisors that “they’d be asked to make ‘hard decisions’ about evaluating their teams moving into the 2018 calendar year”, Tech website Cheddar reported.
Snap slowed its hiring speed by nearly 60 percent reported having 3,069 workers at the end of 2017.
“The reduction in force is to align resources around our top strategic priorities and to reflect structural changes in our business,” the company said in the filing.
Those charges would be incurred primarily from the third and second quarters of 2018 “according to current exit plans”.
It has also allowed 79,000 square feet of office space at the Santa Monica Airport.