The social media giant Snapchat, known for its fleeting message feature, has decided to reduce the size of its workforce by approximately 20% due to its fleeting revenue growth. CEO Evan Spiegel stated that the disbanding includes the Web3 team.
A note sent to Snap Inc. employees on August 31st revealed several details, including:
- Snap’s revenue growth of 8%.
- Roughly a 20% layoff round was carried out on a team of over 6,400 employees.
- For the time being, the company is restructuring to focus on community growth, revenue growth, and augmented reality.
- The company announced that it would be discontinuing investments in various areas across the organization, including Snap Originals, Minis, and Games. Pixy, a drone camera, is also being phased out.
“While we have built substantial capital reserves, and have made extensive efforts to avoid reductions in the size of our team by reducing spend in other areas, we must now face the consequences of our lower revenue growth and adapt to the market environment,” Spiegel wrote.
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Jake Sheinman, the co-founder of Snap’s Web3 team, announced his departure from the company on Twitter.
The announcement also stated that it will provide at least four months of compensation replacement, as well as financial assistance to enroll in COBRA while continuing to receive compensation and health benefits.
Snap’s leadership team is also changing this week.
Jerry Hunter, the company’s engineering chief, will take over as chief operating officer, with responsibility for all monetization, growth, partnerships, and engineering. And, beginning in October, Ronan Harris, Vice President and Managing Director of Google UK & Ireland, will join Snap as President, EMEA.
Additionally, the company is looking for Presidents for the APAC and Americas regions to provide in-market leadership and oversee local operational needs.
