Snapchat maker Snap is presently in the process of preparing for the largest round of job cuts in its history, Cheddar reported earlier this week, citing sources with knowledge of the matter. The move is understood to be primarily targeting the company's engineering division which hasn't experienced any layoffs since the social media firm was established in 2011. Insiders claim Snap is planning to fire under ten-percent of the unit, or approximately 100 software engineers. The move comes following several other rounds of layoffs which started in September, with Snap already cutting its marketing, hardware, and recruiting divisions.
The Venice, Los Angeles-based company had over 3,000 employees as of December 31, according to its latest consolidated financial report. Following the initial job cuts, Snap slowed its hirings by approximately 60-percent in the final quarter of 2017 as part of major cost-reducing efforts. The firm lost $350 million in Q4 2017 alone, with the period still being touted as its best quarter ever. Employees also weren't awarded any cash bonuses at the end of 2017 after failing to meet internal goals, industry sources claimed earlier this month. Snap co-founder and Chief Executive Officer Evan Spiegel received approximately $637 million in stock awards for his 2017 performance, thus being the recipient of the third-largest CEO payout ever, according to some industry trackers. The developments are understood to have caused some friction within the company's ranks, especially as the internal targets cited as the reason for the withholding of bonuses were reportedly never communicated to employees.
Many senior executives recently departed from Snap and Mr. Spiegel is now said to be looking to delegate some of his corporate powers to their replacements. Snap's first year on the public market largely disappointed investors, with the firm presently trading at just over $18 per share, well below its IPO price of $27.09. The company is presently rolling out a polarizing redesign that angered some users and was criticized as chaotic, though its representatives remain adamant Snapchat will get better over time. The app still appears to be on an upswing, having managed to add nearly nine million users in Q4 2017, though that achievement was recorded before the new redesign started being distributed on a large scale.