But look at their stock price today, up nearly 10% on the news of layoffs.
I've been saying this a lot but nobody really want to hear it: unprofitable tech companies only make sense when money is cheap and consumer spending is high. Both of these preconditions are changing at the same time.
Wall street is going to continually put pressure on unprofitable companies to rapidly reduce costs, and reward those that do.
You are correct that this huge cut is not enough, but it's enough for wall street to gain more confidence in snap for now.
If you work at an unprofitable (or even rapidly decreasing in profits) tech company, especially one that's IPO'd, expect layoffs.
This is the case for me and I am very seriously expecting massive layoffs coming in October, I have been since May, hoping to dodge the bullet but not optimistic.
And this is not going to be like the pandemic where you can be laid off from a negatively impacted company and quickly get rehired by a positively impacted company because this time there are no positively impacted companies.
I've been saying this a lot but nobody really want to hear it: unprofitable tech companies only make sense when money is cheap and consumer spending is high. Both of these preconditions are changing at the same time.
Wall street is going to continually put pressure on unprofitable companies to rapidly reduce costs, and reward those that do.
You are correct that this huge cut is not enough, but it's enough for wall street to gain more confidence in snap for now.
If you work at an unprofitable (or even rapidly decreasing in profits) tech company, especially one that's IPO'd, expect layoffs.
This is the case for me and I am very seriously expecting massive layoffs coming in October, I have been since May, hoping to dodge the bullet but not optimistic.
And this is not going to be like the pandemic where you can be laid off from a negatively impacted company and quickly get rehired by a positively impacted company because this time there are no positively impacted companies.