Snap Inc. Cuts 16% of Workforce Amid Shift to AI, Plans $500M Savings by 2026
Snap Inc. announced a layoff of about 1000 employees, which accounts for 16% of its workforce. This was reported by CEO Evan Spiegel in an internal memo to employees. The company is also closing over 300 open positions.
What is known
According to the management's announcement, these measures are expected to save more than $500 million by the second half of 2026.
Snap noted that the decision is related to changes in work approaches and the use of artificial intelligence technologies. The company reported that AI tools are being used to automate parts of processes, particularly in the development of the Snapchat service, Snapchat+ subscription, and the advertising platform.
Employees affected by the layoffs were offered a compensation of four months' salary, as well as health insurance and other benefits. Dismissal notifications were sent by email. Some employees in North America were advised to work remotely.
This is another round of layoffs at the company following previous waves in 2022, 2023, and 2024. Snap had previously reduced staff as part of a business restructuring.
The company also confirmed plans to launch a consumer version of AR glasses, Specs, in 2026.
Source: Reuters
