Snapchat is in trouble after allegations indicating that its CEO sputtered racist and elitist remarks have surfaced. As a result, thousands of people have uninstalled the app while clamoring through #BoycottSnapchat and #UninstallSnapchat for others to do the same.
Snap Inc., the company behind Snapchat, is denying any wrongdoings made by its CEO, Evan Spiegel. Accusations that Spiegel said that the app is "only for rich people" and that the company should not "expand into poor countries like India and Spain" are "ridiculous" defended the company. The allegation was made by a former employee.
Anthony Pompliano worked for Snap for a total of three weeks during which he was supposedly able to unearth some controversial practices of the company. Variety, which was one of the first to report on the issue, said that Pompliano discovered that Snap Inc. was "padding up" its user data. He indicated in a lawsuit filed in the L.A. Superior Court in January that the company used a couple of crude methods, Flurry and Blizzard, to calculate for the daily active users (DAUs). The figures they came up with, however, were inaccurate. This exaggeration of user data is not known among some of the company's top executives, Pompliano also said.
Business Insider also reported that the controversial comments were said during a meeting with Spiegel held on Sept. 5. At the meeting, which was supposedly about expanding Snapchat's reach globally, Pompliano discussed his findings with Spiegel and other members of the company's senior management team. When he mentioned that Snapchat was performing poorly in India and Spain, a supposedly enraged Spiegel cut him off and made the said inappropriate remarks.
In his complaint, Pompliano said that Spiegel and two other executives deemed him as a "risk to Snapchat's IPO". He was then asked to make another presentation to answer Spiegel's many queries. During the presentation, Pompliano allegedly "systematically dismantled Mr. Spiegel's misguided criticism". Pompliano was given the pink slip the following day.
As the case is still ongoing, the truth behind the divisive remarks is yet to be known. However, the effect of the lawsuit has already taken its course as more and more people are deleting their Snapchat accounts and #BoycottSnapchat has been trending since. This sudden turn of events adds to Snap's up-and-down performance lately. The company had some success with its Snapchat Spectacles before its IPO ended up as a huge flop.