Snap CEO Evan Spiegel Embraces "Startup Mode" to Boost Growth and Compete with Rivals.

Snap CEO Evan Spiegel aims to replicate "startup energy" by restructuring the company into small teams of 10-15 people, or "squads," to operate as startups inside Snap. This move follows a challenging second quarter for the brand, in which ad revenue "stumbled." The strategy mirrors that of other tech companies, like Meta, which are also embracing startup mode with smaller, more nimble teams. Snap hopes to compete with both smaller and larger rivals by fostering a culture of fast failure and single-threaded leaders accountable for outcomes.

Snap Inc., the social media company behind Snapchat, has announced a significant restructuring aimed at boosting growth following a challenging second quarter. CEO Evan Spiegel has implemented a strategy to form small, agile teams, or "squads," to operate as startups within the company. This move comes as Snap seeks to compete with both smaller and larger rivals by fostering a culture of innovation and accountability.

Spiegel's annual letter to employees revealed that Snap will create five to seven groups of 10 to 15 people, each operating as independent "startups" within the company. These squads will focus on "big, new bets" and will have weekly demo days and 90-day cycles, with a strong emphasis on "fast failure" and accountability Evan Spiegel is going 'startup' mode as he says Snap faces a 'crucible moment'^[1].

The restructuring is part of Snap's broader strategy to navigate the competitive tech landscape. The company finds itself squeezed between tech giants and smaller, nimbler competitors. Spiegel has compared Snap's position to that of a middle child, emphasizing the need to run faster to keep up and to compete effectively 14 Years at Snap Inc.^[2].

Snap's ad revenue growth slowed to 4% year-over-year in the second quarter, and daily active users slipped 2% in North America to 98 million. However, the company remains optimistic about its future, aiming to reach 1 billion users by 2026 14 Years at Snap Inc.^[2].

The new squads are expected to drive innovation and speed up decision-making. Spiegel has cited Snapchat+ as an example of a small, cross-functional squad that launched quickly and achieved significant success, reaching about 15 million paying subscribers in less than three years Evan Spiegel is going 'startup' mode as he says Snap faces a 'crucible moment'^[1].

Snap is not alone in adopting this strategy. Meta, a direct competitor, is also embracing startup mode with its superintelligence unit, which includes a group of key hires called TBD Lab Evan Spiegel is going 'startup' mode as he says Snap faces a 'crucible moment'^[1].

By focusing on smaller, more agile teams, Snap aims to replicate the energy and willingness to take risks that characterized its early days. The company hopes to leverage its brand, distribution, and infrastructure while adding "focus, accountability, and hustle" to its operations Evan Spiegel is going 'startup' mode as he says Snap faces a 'crucible moment'^[1].

References:
Evan Spiegel is going 'startup' mode as he says Snap faces a 'crucible moment'^[1] https://www.businessinsider.com/snap-forming-small-teams-startup-mode-crucible-moment-2025-9
14 Years at Snap Inc.^[2] https://newsroom.snap.com/14-year-letter