The report by Snap Inc.’s CEO, Evan Spiegel, states, “We have made the difficult decision to reduce the size of our team by approximately 20%. The scale of these changes vary from team to team, depending upon the level of prioritization and investment needed to execute against our strategic priorities.”
Snap Inc. laid off 20% of its workforce and disbanded its Web3 division to counter the financial loss caused by low revenue growth.
Snapchat’s parent company, Snap Incorporated, took the initiative to restructure the firm by laying off 20% of its employees, claiming the company must decrease its cost structure to avoid significant losses. The announcement came as Snap Inc.’s stock price fell by 85% since the beginning of the year.
The teams most impacted by this decision are the Web3 and AR hardware divisions, with the former getting axed despite Snapchat’s recent plans to add NFTs as AR filters on its social media platform.
According to Snap’s leader of Web3, Jake Sheinman,
“After ~4 years at Snap, today is my last day. As a result of the company restructure, decisions were made to sunset our web3 team.”
Moreover, the official report claims that the company will turn its attention towards three strategic priorities: community growth, revenue growth, and augmented reality (AR), with projects that do not directly contribute to these goals either getting shuttered or having their funding reduced.
Additionally, Snap has started reorganizing its team and has promoted Jerry Hunter to the position of Chief Operating Officer. Furthermore, the firm has begun creating a new President title in the Americas, EMEA, and Asia-Pacific regions, with Ronan Harris already appointed the President of the EMEA regions.
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