Snap lays off 20% of employees

Re:Snap lays off 20% of employees by rossdavidh on Wednesday August 31, 2022 @03:20PM (#32667046)

In my experience in the corporate world, the reason is often one that only makes sense for the person making the decision. Spinning it off right now would be a big investment in time, and thus attention from the higher up's. They have a lot else on their plate right now and would rather not think about that, and the amount of money they would make from spinning it off (in the current environment) is not enough to solve any of their other problems.

It doesn't necessarily mean it couldn't have survived on its own if it were spun off. It just may not be what the decision makers want to be thinking about right now. It's not always about what's important to the company (i.e. the company's money), sometimes it's about what's important to the CEO (who really wants to think about other things, and if they have a major distraction that maybe doesn't go well it could add to board pressure on him to step down).

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Re:Snap lays off 20% of employees by commandlinefan on Wednesday August 31, 2022 @03:43PM (#32667320)

> one that only makes sense for the person making the decision

And sometimes (often?) that reason is "I'll show him who's boss around here, don't care if it costs millions of dollars and tanks the stock price, I'm untouchable and they're not gonna forget it!"

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Re:Snap lays off 20% of employees by twawaaay on Wednesday August 31, 2022 @05:46PM (#32668780)

Good point. Focus is a resource too. If your the world suddenly shifts and you need to focus on survival it might make sense to cut things that might or might not be profitable but are unlikely to carry your business to survival but will for sure require a lot of focus to succeed.

Of course, this is just pure speculation.

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