Snap Inc. closes Web3 unit amid job cuts

Snap Inc. announced that it will close its Web3 segment to make room for reorganization after missing its financial goals.
Snap Inc. closes Web3 unit amid job cuts
Snap Inc. closes Web3 unit amid job cuts

CEO of Snap Inc. Evan Speigel said in a note on Friday that the business had made the challenging choice to cut the size of its personnel by about 20%.

According to the memo, the company’s recent poor revenue growth, stock price decline, and general financial underperformance led to this round of layoffs. Shared by Speigel:

“Our forward-looking revenue visibility remains limited, and our current year-over-year QTD revenue growth of 8% is well below what we were expecting earlier this year.”

To safeguard the company’s success in a very competitive market where Instagram and TikTok are now kings, Snap Inc. will immediately start the process of restructuring. The organization has fired every member of the Web3 team as part of its reorganization process. The leader of Snap’s Web3 team, Jake Sheinman, made his resignation from the business official on Wednesday with a series of tweets that read:

“As a result of the company restructure, decisions were made to sunset our web 3 team.”

The change, according to CEO Speigel, is part of an effort to concentrate on three strategic priorities: community expansion, revenue growth, and augmented reality (AR). Projects that don’t fit in with these categories will either be abandoned or have their budgets drastically reduced.

Presently, it seems like Snap will not give the developing Web3 and Metaverse sector as much priority as its rivals, like Meta. Snap does not seem interested in taking a position in the blockchain sector, despite the fact that many digital visionaries seem to agree that Web3 will be the next generation of the internet.

Snap’s layoffs follow those of other digital firms like Coinbase, LinkedIn, Meta, Apple, Google, and Netflix, all of whom were forced to reduce their workforces as a result of the economy’s inflationary environment and rising interest rates.