Snap Shrinks Workforce as AI Takes Bigger Role
Chief Executive Spiegel ties a 1,000-job cut to leaner teams, heavier AI use and a push toward profitable growth.
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Snap said it will lay off about 1,000 employees, or 16% of its full-time workforce, as the Snapchat owner restructures operations and leans more heavily on artificial intelligence to improve efficiency.
The company is also closing more than 300 open roles.
In a memo to staff, Chief Executive Evan Spiegel said the move is part of a broader effort to create “a new way of working that is faster and more efficient, while pivoting towards profitable growth.”
Snap said the changes are expected to reduce its annualized cost base by more than $500 million by the second half of 2026.
Spiegel said employees will use AI to “reduce repetitive work and increase velocity,” adding that smaller teams have already been operating that way in recent months.
“Change of this magnitude and at this speed is never easy and it will not be seamless,” Spiegel said.
Reuters reported that AI now generates more than 65% of Snap’s new code.
The latest cuts mark another major round of layoffs at Snap after a 20% workforce reduction in 2022, a 3% cut in late 2023 and a 10% reduction in 2024.
The move also comes weeks after activist investor Irenic Capital Management disclosed an economic interest of about 2.5% in Snap’s Class A shares and urged the company to cut costs, optimize its portfolio and make better use of AI.
Snap said the restructuring is expected to result in $95 million to $130 million in related charges, mostly in the second quarter.
Snap’s announcement reflects a broader trend across the technology sector, where companies are cutting jobs while increasing investment in artificial intelligence.
Several firms, including Amazon, Meta Platforms, Block, Pinterest and Atlassian, have reduced headcount this year as they expand the use of AI tools.
