Snap Dismantles AR Enterprise Business, Axes 170 Jobs
Portfolio Pulse from Nabaparna Bhattacharya
Snap Inc. is discontinuing its AR Enterprise operations, resulting in the loss of 170 jobs. The company found the additional investment required for the segment challenging. The advent of generative AI also made it difficult for Snap to differentiate its offering. However, Snap plans to focus more on its core advertising business and grow its Sponsored AR business on Snapchat. The company's shares are trading higher by 1.7% to $8.48.
September 27, 2023 | 4:41 pm
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NEUTRAL IMPACT
Snap's decision to discontinue its AR Enterprise operations could lead to cost savings in the short term. However, the loss of 170 jobs may impact morale and productivity. The company's focus on its core advertising business and Sponsored AR business on Snapchat could drive growth.
The discontinuation of the AR Enterprise operations could lead to cost savings for Snap, which could positively impact its financial performance in the short term. However, the loss of 170 jobs could negatively impact employee morale and productivity, which could have a negative impact in the longer term. The company's decision to focus more on its core advertising business and Sponsored AR business on Snapchat could drive growth, which could have a positive impact on its stock price.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 100