Snap Social Media Giant Disbands Web3 Team Amid Mass Layoffs

As a result of much slower growth, Snap is disbanding its Web3 team in an effort to save costs.

Co-founder of Snap’s Web3 team Jake Sheinman tweeted on Thursday about leaving the company, revealing the plans of the social media behemoth.

“As a result of the company restructure, decisions were made to sunset our Web3 team,” the tweet read.

Following the announcement of the company’s second-quarter earnings in July, CEO Evan Spiegel acknowledged executives were concerned about the underperformance of the business.

“Our financial results for Q2 do not reflect the scale of our ambition,” the company acknowledged in a note to investors. “We are not satisfied with the results we are delivering.”

Although increasing 13% from the same quarter last year, Snap’s Q2 revenue of $1.11 billion fell significantly short of both analyst expectations and the company’s previous target of 20% to 25%.

Spiegel revealed Snap would be letting go of 20% of its workers

“The extent of this reduction should substantially reduce the risk of ever having to do this again, while balancing our desire to invest in our long-term future and reaccelerate our revenue growth,” Spiegel wrote.

The layoffs are anticipated to particularly hard on Snap’s augmented reality (AR) Spectacles team, putting an abrupt end to the company’s AR honeymoon.

Three years after the release of Lenses, Snapchat’s unique AR filters, the firm introduced Spectacles AR spectacles. For more than $500 million, the firm last year purchased WaveOptics, the manufacturer of the AR displays used in Snap’s Spectacles. This was the company’s largest acquisition for 2021.

The business also had experimental plans to let users integrate NFTs into Snapchat as AR filters as recently as July, but given the impending layoffs, it’s unclear if those plans will continue forward.

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