Snapchat proprietor Snap Inc. has confirmed it plans to put off roughly 20 p.c of its workforce and cease investing in video video games. The information comes with year-on-year income progress on the firm falling “effectively beneath” expectations.
As noticed by Engadget and confirmed in a memo despatched to buyers, Snap mentioned it’ll cut back its international headcount by roughly 20 p.c so it might refocus on prime priorities and “drive in direction of profitability.”
Elaborating additional, Snap indicated its three strategic priorities shifting ahead can be “neighborhood progress, income progress, and augmented actuality,” noting that tasks that do not “instantly contribute” to these areas will obtain much less funding or be discontinued totally.
Which means the corporate’s online game plans are being shelved indefinitely, with the choice coming round three years after Snap launched its sport platform in partnership with builders like Zynga and Spry Fox.
“We now have labored thoughtfully and intentionally to search out the appropriate stability between focusing our investments whereas persevering with to innovate, and we’ve got made the choice to discontinue our investments in Snap Originals, Minis, Video games, and Pixy, amongst different areas,” reads the memo.
Snapchat’s video games had reportedly reached 200 million customers as of Could 2021, and likewise boasted round 30 million month-to-month lively customers. These figures steered that, on the time, over 16 p.c of Snapchat customers had been taking part in video games on the social media platform.
Commenting additional on the layoffs and discontinuation of sure tasks, Snap mentioned it was “deeply sorry” concerning the determination, however steered the “extent of this discount ought to considerably cut back the danger of ever having to do that once more.”