Snap is laying off approximately 16 percent of its global workforce, affecting around 1,000 full-time employees, according to a memo from CEO Evan Spiegel. The social media company is also closing more than 300 open roles, The Verge reported.
The restructuring aims to reduce Snap's annualized cost base by more than $500 million by the second half of 2026. This reduction is intended to establish a clearer path toward net-income profitability, according to TechCrunch.
Spiegel cited advancements in artificial intelligence as a primary driver for the workforce reduction. In an 8-K filing included in the memo, Spiegel stated, “While these changes are necessary to realize Snap’s long-term potential, we believe that rapid advancements in artificial intelligence enable our teams to reduce repetitive work, increase velocity, and better support our community, partners, and advertisers.”
Leveraging AI for efficiency
TechCrunch noted that the company is already utilizing AI tools to improve specific product areas, including Snapchat+, the Snap Lite infrastructure, and ad platform performance. Spiegel observed that small teams are already using these tools to drive progress across several key initiatives.
The company's workforce was approximately 5,261 full-time employees as of December 2025, The Verge reported.
Spiegel described the current period as a "crucible moment" for the company. In a presentation to investors, Snap noted it is caught between large competitors with massive resources and agile startups, a situation that requires a pivot toward profitable growth, TechCrunch reported.
U.S.-based employees affected by the cuts will receive four months of severance, healthcare coverage, equity vesting, and transition support, according to TechCrunch. Snap joins other major technology firms that have implemented significant layoffs this year, including Meta, Amazon, Oracle, GoPro, and Block, according to The Verge.
