Facing serious headwinds, Snap CEO Evan Spiegel said Wednesday the company plans to double down on its focus on close visual communications between friends and family, rather than turn its entire business into a TikTok-like feed.
Why it matters: Meta has faced intense user blowback for trying to pivot Instagram to be more like TikTok. Spiegel argues that for Snap to remain competitive, it needs to focus on what makes it different.
The big picture: Spiegel's appearance comes days after he announced that Snap is laying off 20% of its workforce in order to withstand an ad slowdown.
Snap is known in the publishing industry as a more reliable publishing partner than some of its rivals, and its relationships with its publishing partners are considered much more sustainable than those offered by its rivals.
Between the lines: Snap has lost nearly 80% of its value this year as growth in the ad industry slows and competition from TikTok increases.
Yes, but: Despite those challenges, Spiegel said going public in 2017 was and continues to be the right decision.
What's next: For now, Snap is focused on generating cash to withstand a market downturn, but it's still committed to investing in what it believes will be a large part of its future: augmented reality.