Snap is breaking itself apart and rebuilding from within. In a new company letter , CEO Evan Spiegel just announced the company is restructuring around small “startup squads” of 10 to 15 people to better compete against larger competitors.

The move comes as the 5,000-person company faces mounting pressure. Advertising revenue growth flatlined at 4% in the second quarter, and North American daily active users declined 2% to 98 million, a troubling sign in Snap’s most important market.

Spiegel does highlight one bright spot: Snapchat+ subscriptions now generate over $700 million in annual recurring revenue from more than 15 million paying subscribers, making direct revenue “one of Snap’s fastest-growing opportunities.”

Snap is also doubling down on Specs, building its own AR glasses tha

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