Snap Inc. will cut 16% of its global workforce, about 1,000 employees, in a restructuring CEO Evan Spiegel tied directly to artificial intelligence. The company will also close more than 300 open roles. Shares rose as much as 11% in pre-market trading.
In a memo to staff, Spiegel called the decision "incredibly difficult" but said AI enables smaller teams to do more. According to Snap, AI now generates more than 65% of new software code.
The restructuring is expected to cut annual costs by more than $500 million by late 2026. Affected U.S. employees will receive four months of severance and healthcare.
The layoffs follow pressure from activist investor Irenic Capital Management, which disclosed a 2.5% stake and criticized "over-hiring." Irenic also urged Snap to spin off its money-losing Spectacles AR unit, which has burned roughly $500 million annually. Spiegel remains committed to the glasses.
Snap joins a broader trend. According to Layoffs.fyi, more than 80 tech companies have cut about 71,440 jobs this year as automation accelerates.
Snap reported a net loss of $460 million for 2025, an improvement from $698 million the prior year. The company has now conducted four major layoffs in under four years.
Farouque
2 Comments
They hired too many people in the first place.