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Snapchat to shut down its Web3.0 division

As reported by Cointelegraph, Snap Incorporation will now be taking over the task of restructuring in an attempt to certify the company’s success in a competitive space

Snapchat to shut down its Web3.0 division
Market behavior suggests that Snap will not prioritise the Web3.0 and metaverse space

Evan Spiegel, CEO, Snap Incorporation, has made the announcement of company’s decision to reduce the size of its workforce by close to 20%, as reported by Cointelegraph. Through the note, it said that the round of layoffs comes post the company experiencing slow revenue growth, a slump in stock prices, and not being able to fulfil its financial targets.

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

As reported by Cointelegraph, Snap Incorporation will now be taking over the task of restructuring in an attempt to certify the company’s success in a competitive space, where reportedly Instagram and Tik Tok are currently leading. As part of its restructuring process, the company has let go of it entire Web3.0 team. Jake Sheinman, head, Snap’s Web3.0 team, made announcement about his departure through a series of Twitter posts. “As a result of the company restructure, decisions were made to sunset our Web3.0 team,” Sheinman stated through a tweet.

Moreover, Cointelegraph noted that Spiegel shared on the restructuring being the part of an effort to aim for three initiatives such as community growth, revenue growth and augmented reality (AR) projects, with projects not being aligned with these initiatives will not be continued or have their budgets reduced. Market behavior suggests that Snap will not prioritise the Web3.0 and metaverse space, with regard to its competition such as Meta. Reportedly, Snap doesn’t intend to position itself within the blockchain industry. Snap’s layoffs will happen post technology companies such as Coinbase, Linkedln, Meta, Apple, Google and Netflix letting go of their workforce due to rising interest rates.    

Going by Cointelegraph’s website, is a digital media resource covering news on blockchain technology, crypto assets, and emerging fintech trends. 

(With insights from Cointelegraph)

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