Layoffs to save $34 million annually: Snap
Snap made the disclosure in a securities and exchange commission filing, technology website Variety reported late on Saturday. Earlier in the week, Snap confirmed that it laid off about 100 employees, with the cuts mostly affecting its sales team. This third round of layoffs came after Snap cut the jobs of a couple dozen employees across its hardware and recruiting divisions in 2017. This was followed by two dozen more cuts in January
Snap Inc, the parent company of Snapchat, has said that its recent layoffs of about 220 employees will save it $34 million per year in salaries and taxes, as well as a one-time benefit of $31 million related to stock-based comp forfeitures. The company made the disclosure in a securities and exchange commission filing, technology website Variety reported late on Saturday. Earlier in the week, Snap confirmed that it laid off about 100 employees, with the cuts mostly affecting its sales team. This third round of layoffs came after Snap cut the jobs of a couple dozen employees across its hardware and recruiting divisions in 2017. This was followed by two dozen more cuts in January.
During the same time, Snap instituted a company-wide system for evaluating employee performance and CEO Evan Spiegel then told managers that "they would be required to make `hard decisions` about evaluating their teams going into the 2018 calendar year", Tech website Cheddar reported. Snap slowed its hiring rate by nearly 60 per cent last quarter and reported having 3,069 employees 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. Snap also revealed that it expects to lose $25 million to $45 million because of ending lease obligations for offices in Southern California to centralise its corporate headquarters in Santa Monica, California.
Those charges would be incurred primarily in the second and third quarters of 2018 "based on current exit plans". Snap has also leased 300,000 square feet of office space in Santa Monica and has listed 14 of its Venice Beach locations -- totalling 163,000 square feet -- for sublease, Variety cited property news portal CoStar News as saying.
It has also leased 79,000 square feet of office space at the Santa Monica Airport.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Power of Compounding: How many years will it take to reach Rs 3 crore corpus if your monthly SIP is Rs 4,000, Rs 5,000, or Rs 6,000
IRCTC Dividend 2024: Railway PSU announces 200% interim dividend - Check record date and other details
Power of Compounding: Salary Rs 25,000 per month; is it possible to create over Rs 2.60 crore corpus; understand it through calculations
Reduce Home Loan EMI vs Reduce Tenure: Rs 75 lakh, 25-year loan; which option can save Rs 25 lakh and 64 months and how? Know here
Top 7 Large and Mid Cap Mutual Funds with Best SIP Returns in 5 Years: No. 1 fund has turned Rs 15,000 monthly SIP investment into Rs 20,54,384; know about others
New Year Pick by Anil Singhvi: This smallcap stock can offer up to 75% return in long term - Check targets
PSU Oil Stocks: Here's what brokerage suggests on these 2 largecap, 1 midcap scrips - Buy, Sell or Hold?
07:22 PM IST