Snap lays off 1,000 workers, closes 300 roles amid AI drive
Snap lays off 1,000 workers, closes 300 roles amid AI drive
Snap cuts 16% of staff and shuts 300 open roles as it pushes AI-led efficiency and targets $500M annual savings.
Snap Inc. is laying off 16% of its full-time workforce, affecting more than 1,000 employees, and is closing over 300 open roles as part of a broader cost-cutting effort spurred by investor pressure. CEO Evan Spiegel says these changes are necessary to realize Snap's long-term potential and to accelerate progress by leveraging AI to reduce repetitive work and boost velocity.
The company expects to reduce its annualized cost base by more than $500 million by the second half of 2026, aiming for a clearer path to net income profitability. In the first quarter, Snap reported revenue of about $1.53 billion, up 12% from a year earlier, with a profit of $233 million, even as the stock has fallen roughly 31% this year.
The leadership insists AI-driven efficiencies will allow smaller, nimbler squads to drive meaningful progress on key initiatives while continuing to support the community, partners, and advertisers. In addition to layoffs, more than 300 roles planned earlier will be eliminated.
The moves come as Snap tries to revive its advertising business amid mixed results and slower user growth, which investors attribute in part to government restrictions or bans on social media use for teens. Investors have pressed for stronger profitability, prompting leadership to outline a path to sustained net income while balancing cost discipline with product investment.
Looking ahead, Snap says AI-enabled changes should cut repetitive work, speed up product development, and strengthen the company's path to profitability while continuing to support its ecosystem.
