Snap is cutting around 16 percent of its global workforce as part of a major shift toward improving profitability with the help of artificial intelligence.
The move affects roughly 1,000 employees, along with the closure of more than 300 open roles, according to a company memo from CEO Evan Spiegel.
The decision reflects a broader strategy to streamline operations and focus on long-term growth. Spiegel described the layoffs as difficult but necessary, explaining that Snap is trying to become faster, more efficient, and more focused on areas that can deliver sustainable value.
A key part of this shift is the increasing role of AI across the company. Snap believes recent advancements in artificial intelligence can help reduce repetitive tasks, speed up development, and improve how teams support users, partners, and advertisers. The company has already seen smaller teams use AI tools to make noticeable progress in areas like Snapchat Plus, advertising performance, and infrastructure efficiency.
The restructuring is also expected to bring significant financial benefits. Snap aims to cut its annual costs by more than 500 million dollars by the second half of 2026, helping it move closer to profitability.
Despite the scale of the layoffs, the company emphasized support for affected employees, including severance packages, healthcare coverage, and career transition assistance, particularly for those in the United States.
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