Snapchat has chosen to abandon its Web3 team as part of a company restructuring that also involves firing 20% of the staff. Team founder, Jake Sheinman tweeted the information regarding the web3 team.
The tweet said, “As a result of company restructure, decisions were made to sunset our web3 team. The same team I co-founded last year with other pirates who believed in digital ownership and the role that AR can play to support that.”
Snapchat’s Web3 was looking to facilitate more direct connection with NFT projects to make an AR collaboration so that expansions like this would be native to Snap itself.
But it appears that won't happen anymore—at least not in the way that Snap's own, focused Web3 endeavour would have allowed it to.
Snap is shelving the Web3 team but it will continue to work on AR initiatives since AR is one among the three key areas the company is planning to focus on. According to Evan Spiegal, the Snap CEO,
“We are restructuring our business to increase focus on our three strategic priorities: community growth, revenue growth and augmented reality. Projects that do not contribute to these areas will be discontinued or receive substantially reduced investment.”
In July, Snap plans to reduce hiring as a result of the second-quarter results that fell short of analyst expectations. Their quarter-to-date revenue growth of 8% is far less than what the corporation had anticipated.
“Our forward-looking revenue visibility remains limited, and our current year-over-year revenue growth of 8 percent is well below what we were expecting earlier this year,” Spiegel said in a statement.
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