Snapchat parent company shuts down Web3 division due to layoffs

The company has announced that it will be exiting its Web3 division to make way for restructuring after falling behind on its financial targets. New

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

The memo says this round of layoffs comes after the company experienced sluggish revenue growth, falling stock prices and a general lag in meeting its financial targets. Speigel shared:

“Our revenue visibility into the future remains limited, and our current year-over-year revenue growth of 8% is well below what we expected earlier this year.”

Snap Inc. will now undertake the task of restructuring to try to ensure the company's success in a highly competitive space where Instagram and TikTok currently dominate. As part of its restructuring process, the company laid off its entire Web3 team. Jake Sheinman, head of Snap's Web3 team, announced his exit from the company on Wednesday in a series of posts on Twitter stating:

"As a result of corporate restructuring, decisions have been made to terminate our Web 3 team."

I'm honored to have collaborated with the smartest builders, the most creative artists, and the kindest humans. Today has been difficult and I will miss this place very much, but I am grateful for it all. I will be taking personal time in the coming weeks, but am open to discussing new opportunities

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CEO Speigel said the restructuring was part of an effort to focus on three strategic priorities; namely, community growth, revenue growth, and augmented reality (AR). Projects that are not aligned with these areas will be terminated or their budgets will be significantly reduced.

Right now, it looks like Snap isn't prioritizing the burgeoning Web3 and Metaverse space as much as it does its competitors, such as Meta. Although many technology innovators seem to share the view that Web3 will be the next iteration...