Social media giantSnap IncSNAP is dissolving its Web3 team amid company-wide layoffs, according to a prominent member of thatteam.
What Happened:Earlier this week, reports emerged that the Snapchat parent planned tocut 20% of its workforce, joining a cohort of tech companies likeTesla IncTSLA andShopify IncSHOP that have announced layoffs in the last six months.
The report suggested that certain departments would be hit harder than others, including its AR/VR and hardware division. Program ManagerJake Sheinmanrevealed in a tweet that the companys Web3 department would be one of the first to be officially disbanded.
After ~4 years at @Snap, today is my last day. As a result of the company restructure, decisions were made to sunset our web3 team. The same team that I co-founded last year with other pirates who believed in digital ownership and the role that AR can play to support that.
1/2 Jake Sheinman (@jakeryanshein) August 31, 2022
I'm humbled to have partnered with the smartest builders, most creative artists, and kindest humans, Sheinmansaid on Twitter.
Today was tough and I'll miss this place dearly but I'm grateful for all of it. Will be taking some personal time in the coming weeks but open to discuss new opportunities.
Benzinga reached out to Snap for confirmation of Sheinman's statements but hadn't received a response as of the time of publication.
Snaps stock is down 80% since the beginning of the year. The firm reportedsuboptimal revenueof $1.11 billion in the last quarter, with earnings that also fell shy of analysts estimates.
While the continued growth of our community increases the long-term opportunity, for our business, our financial results for Q2 do not reflect our ambition, said CEOEvan Spiegelat the time.
Price Action:SNAP shares traded 1.03% lower after hours.The crypto market saw a 0.48% increase over the last 24 hours.BitcoinBTC/USD was trading at $20,048 andEthereumETH/USD was trading at $1,575 at press time, as per data fromBenzinga Pro.
