Snap lays off 1,000 employees, shuts over 300 open roles

Snap Inc., the parent company of the popular social media platform, is set to reduce its full-time staff by 16%, affecting over 1,000 employees. This significant downsizing is part of a broader strategy to cut costs as the company grapples with sluggish growth in advertising revenue and increasing investor pressure. CEO Evan Spiegel announced that these layoffs are expected to save the company approximately $500 million annually. As of late 2025, Snap employed around 5,261 individuals, and this number is poised to decrease markedly following these layoffs. In a memo shared with staff, Spiegel emphasized the necessity of these changes to unlock Snap’s long-term potential. He noted the transformative impact of advancements in artificial intelligence, which are intended to help streamline processes, enhance productivity, and better serve the community, partners, and advertisers. The memo also indicated that smaller teams have begun utilizing AI tools to foster significant progress in various initiatives. In addition to the workforce reductions, Snap will also be closing over 300 job openings that had been anticipated but were not yet filled. Spiegel elaborated that these adjustments are projected to lower the company's annual cost base significantly by the second half of 2026, paving a more defined route towards achieving net-income profitability. Despite a reported revenue increase of 12% to approximately $1.53 billion in the first quarter, with a profit of $233 million, Snap’s stock has seen a substantial decline of nearly 31% this year. The company is also facing challenges with user growth, particularly due to governmental restrictions on social media usage for teenagers. Moreover, while Snap has made efforts to revitalize its advertising strategy, results have been mixed, prompting the need for these cost-saving initiatives. In the communication to employees, Spiegel assured those affected that they would receive four months of severance pay, continued healthcare coverage, and equity vesting for U.S. employees. Career transition support will also be provided. For employees based outside the U.S., Snap will adhere to local laws and practices regarding severance and support. Spiegel expressed gratitude to departing employees, acknowledging their significant contributions to the company’s development. Those impacted in the U.S. will receive further details via email regarding the next steps, while non-U.S. employees will be informed by their respective leadership and HR teams.