Snap just killed its Hollywood ambitions to bet its future on the metaverse

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After months of slumping advertising revenue and a tanking stock price, social media giant Snap is scaling back dramatically.

On Aug. 31, Snap CEO Evan Spiegel said the company is laying off 20% of its work force (over 1,200 people), and is getting rid of Snap Originals, the company’s production of scripted and documentary-style programming. Launched in 2016, Snap Originals recruited top-tier talent, including actors Will Smith and Ryan Reynolds, rapper Megan Thee Stallion, and comedian Kevin Hart.

“We are restructuring our business to increase focus on our three strategic priorities: community growth, revenue growth, and augmented reality,” Spiegel said in a statement. “Projects that don’t directly contribute to these areas will be discontinued or receive substantially reduced investment.”