Snap employee sentiment is plummeting as it scrambles to reverse course
Snap ($NYSE:SNAP) investors may not be having a great day, but it appears that Snap employees aren't having a good year, according to data collected from Glassdoor employee sentiment reviews.
Despite improved user retention and a revenue jump of 44% to $262 million, investors — and reporters — fixated on one disconcerting metric that has them all concerned about Snap's future viability as a social media platform: a decline in daily active users of 2% to 188 million from 191 million at the end of the first quarter. Snap attributed the drop to its redesign, but any loss of users in a market where most social platforms are gaining users as a healthy clip is bad news. As a result, Snap's stock took a tumble by as much as 8% (it's currently down 5% today).
But things appear to be even worse internally at the company, according to data we collect from Glassdoor employee reviews.
Snap's workplace overall review score from employees dropped from 4.1 to 2.6 out of 5 points since last fall. The massive 36% average drop appears to have begun in March, 2018, just before the redesign was launched and right after some layoffs in Snap's engineering division.
In fact, all major Glassdoor metrics are down at Snap, including CEO Rating, Business Outlook, and across metrics that measure whether or not employees would recommend Snap as a good place to work to others.
Employee ratings of Snap CEO Evan Spiegel were at an impressive 93% last fall. Today his approval rating is at just 25%. Glassdoor tells us that the average CEO score on its platform is around 65%. In other words, Spiegel went from an almost unanimously loved leader to potential scapegoat in less than a year.
Snap's "Business Outlook" rating took a similar dive. When rating "Business Outlook", Glassdoor users are asked to answer, "Do you believe your company's business outlook will get better, stay the same or get worse in the next six months?"
As to whether or not Snap employees would recommend the company as a place to work to others, after a high of 83% answering "Yes" last fall, just 27% would do the same today.
By looking at the ratings mix — the number of ratings per type over time — we can see the moment in early March 2018 when 1-star and 2-star reviews of Snap as a workplace began their rise.
It's important to note that early March is exactly when Snap laid off around 120 engineers. Given that, those negative reviews are quite possible disgruntled ex-employees who took to Glassdoor to vent their frustrations. While that may be part of the case here, negative reviews have continued to mount all summer leading up to this week's announcements. In fact, we reported on negative Glassdoor reviews at Snap last year.
As Snap looks to re-invent itself as a "camera company" while scrambling to remain relevant in a competitive social media environment, one thing is clear: it needs to do something about what appears to be a skeptical workforce right under its own nose.