Digital Gabe
Cutting Edge Commentary On All Things Media

The Downside Of Growing Too Fast

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Yesterday Snapchat announced another round of layoffs. Earlier in March Snap laid off 22 engineers, but this time the cut was deeper with around 100 layoffs from their Sales org.  With 2,000ish employees this RIF only represents a 5% reduction of their workforce, but anytime you reduce the number of quota bearing sales reps it has the potential to disrupt business.  As the saying goes, you can’t cut your way to revenue growth.

While it’s unfortunate when anyone loses their job, you probably could have seen this one coming.  In 2015 Snapchat was the belle of the digital ball with a small but mighty group of 350 employees.  Then they went on a spending spree and hired 1,700 employees over the next 24 months.  I don’t care how good of an HR department and hiring managers you have, trying to onboard that many people at once is a recipe for disaster.  How can you insure you’re hiring quality people and not just anyone with a pulse?  And don’t even think about training and equipping that many employees to do the jobs you hired them for.

Sadly the lesson Snap learned about growing too fast has a real human toll with 100 people now out of their jobs.  This should serve as a cautionary tale for employers and employees alike, that the slow and steady tortoise may have had it right all along.

 

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