Snapchat’s parent company shutters Web3 division amid layoffs

Snapchat’s parent company shutters Web3 division amid layoffs

The company said it will let go of its Web3 division to make way for restructuring after falling behind financial targets.

Snap Inc’s CEO Evan Speigel announced in a note on Friday that the company had made the difficult decision to reduce the size of its workforce by approximately 20%. 

The note said that this round of layoffs comes after the company experienced slow revenue growth, a slump in stock prices, and a general lag behind its financial targets. Speigel shared:

CEO Speigel shared that the restructuring is a part of an effort to focus on three strategic priorities; namely, community growth, revenue growth and augmented reality (AR). Projects that are not in alignment with these areas will be discontinued or have their budgets slashed significantly.

At the moment, it appears that Snap will not be prioritizing the budding Web3 and Metaverse space as much as its competition, such as Meta. Although many tech innovators seem to share the opinion that Web3 is going to be the next iteration of the internet, Snap does not appear interested in positioning itself within the blockchain industry.

Snap’s layoffs come after other tech companies like Coinbase, LinkedIn, Meta, Apple, Google and Netflix have had to cut down their workforce due to rising interest rates in an inflationary economy.

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