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Snapchat announces to downsize its web3 team by 20% to restructure the firm

Snapchat CEO, Evan Spiegel on September 2 announced in a note that the firm had decided to cut the size of its staff by nearly 20%.

In the note Snapchat states that the layoff decision comes after the firm reported slow financial growth, falling behind monetary targets and a slump in stock prices.

Spiegel said, “our forward-looking income visibility stays limited and our present year-over-year QTD income growth of 8% is well behind what we anticipated earlier this year.”

The firm will try to ensure the organisation’s success in a highly competitive environment, where TikTok and Instagram are now ruling, by undergoing the restructuring process. As part of its rebuilding process, the firm has cut down its whole web3 team.

Head of Snap’s Web3 team, Jake Sheinman in a series of Twitter posts announced his exit from the firm on 31 August.

Snapchat CEO stated that the rebuilding is an effort to focus on three essential needs; income growth, augmented reality (AR) and community growth. The projects will be stopped and also their budgets will be slaughtered significantly, if the projects are not aligned in the following mentioned three areas.

Right now, it appears that Snapchat would not be focusing on the budding Web3 and Metaverse space as much as its opposition like Meta is doing. Although numerous tech pioneers appear to share the opinion that Web3 will be the following iteration of the internet, Snap doesn’t seem keen on situating itself within the blockchain industry.

Due to increasing interest rates in a highly inflationary economy, Snapchat layoffs come just after many tech organisation such as Meta, LinkedIn, Google, Apple, Netflix and Coinbase, have chopped down their workforce.

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