Snap has decided to shut down a division of its company that was dedicated to providing augmented reality (AR) services to enterprise customers.
This division, called AR Enterprise Service (ARES), was first announced in March of this year. ARES offered a Shopping Suite for brands, which allowed them to use AR try-on features, a 3D viewer for examining products from multiple angles, fit and sizing recommendation technology, and an enterprise manager where brands could host and manage all digital assets.
Snap introduced ARES and AR Mirrors at its Partner Summit in April, showcasing the offerings to brands. Coca-Cola, Men’s Wearhouse, and Nike have tested the technology, with Coca-Cola creating an AR-enabled vending machine. The Shopping Suite was expanded with new features, including Live Garment Transfer, which simplifies AR asset creation for retailers.
Snap, the parent company of Snapchat, has closed its content team in the UK, as reported by Bloomberg, based on an internal memo sent by Snap CEO Evan Spiegel, which Snap later confirmed.
In the memo, the CEO explained that the emergence of AI tools has impacted Snap’s competitive advantage. He also noted the need to invest more heavily in web tools rather than mobile technology, which Spiegel described as “technically complex and less engaging for our customers.” Spiegel noted that the rise of generative AI has made it easier for all companies to offer try-on experiences, making it harder for their own company to differentiate itself.
The company has made a decision to stop investing in ARES as it would require significant funding, which they cannot provide. As a result, 170 jobs at Snap will be cut, but some employees may be offered other roles such as support for CameraKit, Sponsored AR advertising, and others.
“I am deeply grateful for the hard work of our AR Enterprise team,” wrote Spiegel. “It is very difficult to create a new business, and incredibly painful to wind it down, but it is the willingness to take risks and try new things that moves the world forward through innovation and experimentation. The courage and strength of our AR Enterprise team members embodies so much of what I love about Snap and I am so sorry that this venture did not work out as we had hoped. Leading in augmented reality means that sometimes we will fail, and I am proud that our team dared to build this business even if we did not succeed,” he said.
Snap has mentioned in the memo that it still has 250 million daily users engaging with its AR experiences.
This division, called AR Enterprise Service (ARES), was first announced in March of this year. ARES offered a Shopping Suite for brands, which allowed them to use AR try-on features, a 3D viewer for examining products from multiple angles, fit and sizing recommendation technology, and an enterprise manager where brands could host and manage all digital assets.
Snap introduced ARES and AR Mirrors at its Partner Summit in April, showcasing the offerings to brands. Coca-Cola, Men’s Wearhouse, and Nike have tested the technology, with Coca-Cola creating an AR-enabled vending machine. The Shopping Suite was expanded with new features, including Live Garment Transfer, which simplifies AR asset creation for retailers.
Snap, the parent company of Snapchat, has closed its content team in the UK, as reported by Bloomberg, based on an internal memo sent by Snap CEO Evan Spiegel, which Snap later confirmed.
In the memo, the CEO explained that the emergence of AI tools has impacted Snap’s competitive advantage. He also noted the need to invest more heavily in web tools rather than mobile technology, which Spiegel described as “technically complex and less engaging for our customers.” Spiegel noted that the rise of generative AI has made it easier for all companies to offer try-on experiences, making it harder for their own company to differentiate itself.
The company has made a decision to stop investing in ARES as it would require significant funding, which they cannot provide. As a result, 170 jobs at Snap will be cut, but some employees may be offered other roles such as support for CameraKit, Sponsored AR advertising, and others.
“I am deeply grateful for the hard work of our AR Enterprise team,” wrote Spiegel. “It is very difficult to create a new business, and incredibly painful to wind it down, but it is the willingness to take risks and try new things that moves the world forward through innovation and experimentation. The courage and strength of our AR Enterprise team members embodies so much of what I love about Snap and I am so sorry that this venture did not work out as we had hoped. Leading in augmented reality means that sometimes we will fail, and I am proud that our team dared to build this business even if we did not succeed,” he said.
Snap has mentioned in the memo that it still has 250 million daily users engaging with its AR experiences.