Snapchat Calls End to Web3 Division, Lays Off 20% Employees
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- The business has eliminated all Web3 employees as part of its ongoing restructuring.
- Jake Sheinman, head of Snap’s Web3 team, announced his departure.
On Friday, Snap Inc. CEO Evan Speigel revealed in a statement that the company has made the painful choice to lay off 20% of its employees. According to the statement, the company has experienced weak revenue growth, declining stock prices and a general failure to meet its financial projections.
Now that Instagram and TikTok have established themselves as industry leaders, Snap Inc. is going through a period of reorganization to ensure the company’s continued success. The business has eliminated all Web3 employees as part of its ongoing restructuring.
“Our forward-looking revenue remains limited, and our current QTD revenue growth of 8% is well below what we expected earlier this year.”
On Wednesday, Jake Sheinman, head of Snap’s Web3 team, announced his departure from the company in a tweet. CEO Speigel said the changes were made to better address the company’s three most pressing concerns: expanding its user base, growing revenue and improving the potential of augmented reality (AR). Furthermore, anything that doesn’t fit these priorities will be scrapped or underfunded.
Snap now appears less committed to the emerging Web3 and Metaverse markets than its rivals such as Meta. Snap doesn’t seem interested in establishing itself within the blockchain business. Despite the widespread belief among IT pioneers that Web3 is the next generation of the Internet.
The increase in interest rates in the inflationary market has forced several Internet companies. These include Coinbase, LinkedIn, Meta, Apple, Google and Netflix to lay off employees.
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