Snap cuts 16 pct of global workforce, bets big on AI to boost profits
Follow UsAround 1,000 employees affected, with over 300 open roles also eliminated.
CEO Evan Spiegel says AI will reduce repetitive work and speed up product development.
Company expects to save over $500 million by H2 2026 amid wider tech layoffs across Meta, Amazon and Oracle.
Snap has announced a massive round of layoffs, cutting about 16 per cent of its global workforce in order to streamline operations and increase profitability. The move will affect around 1,000 employees while the company is also eliminating more than 300 open positions, as per an internal memo from CEO Evan Spiegel.
SurveyThis round of layoffs comes as Snap is doubling down on AI to drive efficiency across its operations. Spiegel noted that the advancements in AI are allowing teams to automate repetitive tasks, accelerate product development and better support users, advertisers and partners. He added that smaller teams using AI tools have already contributed to improvements across key areas, including premium offerings and advertising systems.
“Today, we are announcing changes that will impact approximately 1,000 team members at Snap, including 16% of our full-time employees, in addition to closing more than 300 open roles. This is an incredibly difficult decision, and I am deeply sorry to the colleagues who will be leaving us. You have made important contributions to Snap, and we are committed to supporting you through this transition,” The Verge quoted Spiegel saying.
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The company expects the cost-cutting measures to reduce its annual expenses by over $500 million by the second half of 2026, helping it move closer to sustained profitability. So far, Snap has had a workforce of just over 5,200 employees, making this one of the biggest rounds of job cuts.
Anyway, Snap has now joined the growing list of big tech companies doing layoffs amid shifting market priorities and increased focus on AI-driven operations. Till now, the list included Meta, Amazon and Oracle, which fired thousands of employees.
In his message to employees, Spiegel acknowledged the difficulty of the decision and expressed gratitude to those affected, stating that the company would provide severance packages and transition support. He also stated that restructuring is a part of a bigger effort to make a more agile and financially sustainable business.
