• The business has eliminated all Web3 employees as part of its ongoing reorganization.
  • Jake Sheinman, head of Snap’s Web3 team, announced his departure.

On Friday, Snap Inc. CEO Evan Speigel revealed in a statement that the business has taken the painful choice to lay off 20% of its employees. According to the statement, the firm has been experiencing weak revenue growth, a drop in stock prices, and a general failure to meet its financial projections.

Reorganization Efforts

Now that Instagram and TikTok have established themselves as industry leaders, Snap Inc. will undergo a period of reorganization to assure the company’s continued success. The business has eliminated all Web3 employees as part of its ongoing reorganization.

Speigel shared:

“Our forward-looking revenue visibility remains limited, and our current year-over-year QTD revenue growth of 8% is well below what we were expecting earlier this year.”

On Wednesday, Jake Sheinman, head of Snap’s Web3 team, announced his departure from the firm in a series of tweets. CEO Speigel said that the changes were made to better address the company’s three most pressing concerns: expanding the user base, increasing income, and enhancing the potential of augmented reality (AR). Moreover, anything that isn’t in line with these priorities will be scrapped or severely underfunded.

Snap now seems less committed to the developing Web3 and Metaverse market than its rivals, such as Meta. Snap does not seem interested in establishing itself inside the blockchain business. Despite the widespread belief among IT pioneers that Web3 will be the next generation of the internet.

Rising interest rates in an inflationary market have forced a number of internet businesses. These include Coinbase, LinkedIn, Meta, Apple, Google, and Netflix, to lay off employees.

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