Snap Inc. CEO Evan Speigel revealed in a memo on Friday that the business has taken the painful choice to decrease its personnel by around 20%.

According to the memo, this wave of layoffs came after the firm encountered weak revenue growth, a drop in stock prices, and a general lag behind its financial projections. Speigel stated:

“Our forward-looking revenue visibility remains restricted, and our current year-over-year QTD revenue increase of 8% is far below what we expected earlier this year.”

Snap Inc. will now embark on a reorganization effort in order to assure the company’s success in a highly competitive field dominated by Instagram and TikTok. As part of its reorganization efforts, the business has laid off its entire Web3 staff. Jake Sheinman, the leader of Snap’s Web3 team, announced his departure from the firm on Wednesday in a series of tweets stating:

“As a consequence of the corporate reorganization, choices were taken to retire our web 3 team.”

CEO Speigel said that the restructure is part of an attempt to concentrate on three strategic priorities: community expansion, revenue growth, and augmented reality (AR). Projects that do not correspond with these categories will be canceled or have their funding severely reduced.

At the present, it looks like Snap will not prioritize the nascent Web3 and Metaverse spaces as much as its competitors, such as Meta. Although many digital entrepreneurs tend to believe that Web3 will be the next generation of the internet, Snap does not appear to be interested in placing itself inside the blockchain business.

Snap’s layoffs follow those of other digital businesses such as Coinbase, LinkedIn, Meta, Apple, Google, and Netflix, who have had to reduce their staff owing to increasing interest rates in an inflationary climate.

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