Summary: Social media giant Snap is disbanding its Web3 team in a move to slash costs in the face of sharply reduced growth, according to coindesk. Jake Sheinman, co-founder of Snap’s Web3 team, revealed the social media giant’s plans in a tweet announcing his departure from the company on Thursday. “As a result of the company restructure, ...

Social media giant Snap is disbanding its Web3 team in a move to slash costs in the face of sharply reduced growth, according to coindesk. Jake Sheinman, co-founder of Snap’s Web3 team, revealed the social media giant’s plans in a tweet announcing his departure from the company on Thursday. “As a result of the company restructure, decisions were made to sunset our Web3 team,” the tweet read.

Snap CEO Evan Spiegel revealed executives were worried about the company’s underperformance in July, after the company released its second-quarter earnings. Snap’s Q2 revenue of $1.11 billion, while up 13% from the same quarter last year, came in far below the company’s previous guidance of 20% to 25% and was below analyst estimates. On Wednesday, weeks after sharing the numbers, Spiegel announced Snap would lay off 20% of its workforce.

By Amy Liu