Snap Announces AR Enterprise Strategic Review; Says 'We Have Made The Difficult Decision To Wind Down Our AR Enterprise Business'
Portfolio Pulse from Benzinga Newsdesk
Snap Inc. has decided to wind down its AR Enterprise business due to the significant investment required to grow the enterprise offering for retailers. The company will continue to support its CameraKit partners and the AR platform. However, approximately 170 team members will be laid off. Snap will also focus on growing its Sponsored AR business on Snapchat.
September 27, 2023 | 1:26 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Snap's decision to wind down its AR Enterprise business could lead to short-term negative sentiment due to layoffs and the failure of a business venture. However, the focus on Sponsored AR business could provide a new growth avenue.
The decision to wind down the AR Enterprise business indicates a failure in one of Snap's ventures, which could negatively impact investor sentiment in the short term. The layoffs of 170 employees could also lead to negative publicity. However, the company's focus on growing its Sponsored AR business on Snapchat could be seen as a positive move towards a potentially profitable venture.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 100