Snap’s Web3 Team Apparent Victim of 20% Downsize

A former research and development program manager at the company says it chose to “sunset” the division in tweet

article-image

Source: Shutterstock

share

key takeaways

  • Snap is restructuring its business to focus on community growth, revenue growth and augmented reality
  • Layoffs come after Snap reported a net loss of $422 million during the second quarter

Snap appears to have axed its Web3 team as part of the social media company’s decision to restructure and cut its headcount by about 20%. 

Jake Sheinman revealed in a tweet Wednesday that it was his last day at Snap. Most recently working as a research and development program manager, he first joined the company as an account specialist in December 2018, according to his LinkedIn profile

“As a result of the company restructure, decisions were made to sunset our [Web3] team,” Sheinman tweeted. “The same team that I co-founded last year with other pirates who believed in digital ownership and the role that [augmented reality] can play to support that.” 

Loading Tweet..

Sheinman and Snap did not immediately return a request for comment.

While Web3 wasn’t explicitly mentioned, Snap CEO Evan Spiegel said in a Wednesday blog post that investments Snap made to various business lines were under the assumption of a higher rate of revenue growth. The Snapchat community doubled in size since the company’s initial public offering in 2017 and the company’s trailing twelve month revenue has gone up 10 times since then, he added.

But despite seeing a 13% year-over-year revenue increase to about $1.1 billion during the second quarter, Snap reported a net loss of $422 million during the three-month span. 

Somewhat surprisingly, Snap stock is up 16% since Tuesday’s close, while the tech-heavy NASDAQ 100 has slipped more than 1%.

“Unfortunately, given our current lower rate of revenue growth, it has become clear that we must reduce our cost structure to avoid incurring significant ongoing losses,” the CEO wrote on Wednesday. “We are restructuring our business to increase focus on our three strategic priorities: community growth, revenue growth, and augmented reality.”

Sheinman said on LinkedIn that he was on Snap’s emerging mobile apps team, where he supported fintech and crypto companies — such as Coinbase, Cash App, Dave, and Robinhood — to acquire new users. He later helped start Snap’s Web3 team within its product development and research division, he added. 

Snap was exploring plans to allow users to show off NFTs on its app, the Financial Times reported in July. Creators were reportedly set to start testing the feature at the end of August, though it is unclear whether that process began.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Top Icon.png

Research

Osmosis thrived in H2 2023 on the back of increased DeFi activity deriving from recently launched Cosmos-related projects and better market conditions. With new value accrual mechanisms for the native token, Osmosis is well-positioned to continue its strong performance in 2024.

/

article-image

Though the opposing flow trend is likely to slow over time, industry watchers note, bitcoin fund assets could one day eclipse the $90 billion gold ETF space

article-image

Celestia had the first mover advantage. EigenDA has staked ether. What sets Avail apart?

article-image

Bitcoin moved 1% higher Monday morning in New York, Matrixport analysts say $62,000 could happen next month

article-image

It’s hard to believe right now that crypto — even with all of its flexibility and massive capabilities — could ever be like cash on the internet

article-image

Michael Saylor announced Monday morning that MicroStrategy bought 3k more bitcoin after the X account was compromised over the weekend

article-image

Plus, Pudgy Penguins grows its brand and a group of Autoglyphs sell for $14.5 million