Here’s Snap CEO Evan Spiegel’s Internal Memo to Staff in Full

Social media stocks plummeted after the company cut revenue and profit forecasts. The company's shares plummeted, which dragged down the stock prices of other social media companies. In response to a challenging macroeconomic environment, Evan Spiegel sent staff an internal memo warning of a hiring slowdown.

The memo is in full.

Team.

Thank you so much for your hard work. Like many companies, we face rising inflation and interest rates, supply chain shortages and labor disruptions, platform policy changes, the impact of the war in Ukraine, and more.

The macro environment has deteriorated faster than we anticipated when we issued our guidance last month. Our revenue is growing at a slower pace than we expected. We believe that revenue and adjusted EBITDA will be below the low end of the guidance range we provided for this quarter.

The progress we've made growing our revenue, combined with the strength of our balance sheet, has positioned us well for the current environment. Our business is strong, our community is growing, and we are excited about the many opportunities ahead. Despite the ongoing market volatility, 2022, remains a significant investment year for Snap.

We can invest through this period of time and emerge stronger as a business if we manage our expenses well. We will continue to invest across our business priorities, but at a slower pace than we had planned given the operating environment, but we will be taking steps to reprioritize our investments.

• We will continue to hire new team members, including recruiting for open roles.

• We will slow our pace of hiring for unopened roles for the remainder of the year, as well as push some planned hiring into next year.

• We expect to hire more than 500 new team members between now and the end of the year, representing nearly 10% company-wide headcount growth over the next seven months. This is in addition to over 900 offers already accepted this year, up 41% year-over-year, and the roughly 2,000 people added to our team in the trailing 12 months.

• We will continue to backfill existing positions that become available as a result of attrition if those roles remain a high priority for our teams.

• We will also evaluate the remainder of our 2022 budgets and leaders have been asked to review spending to find additional cost savings.

As we work together and help our new team members learn how to contribute to their full potential, our most meaningful gains will come as a result of improved productivity from our existing team members.

Thank you for your hard work and dedication to our community. Over the past decade, you have shown your ability to see through the ups and downs and invest in our long term success.

Evan.