Snap is cutting 1,000 jobs, 16% of its workforce

Snap is set to eliminate approximately 1,000 full-time positions, which represents around 16% of its global workforce. This decision was announced in a memo from CEO Evan Spiegel on Wednesday, highlighting the role of artificial intelligence in this restructuring. In his memo, Spiegel explained that while these layoffs are essential for Snap's long-term vision, the rapid evolution of AI allows the company to streamline operations by minimizing repetitive tasks. He noted that smaller teams have already begun utilizing AI tools to enhance various initiatives, such as Snapchat+, improving advertising performance, and boosting the efficiency of their Snap Lite infrastructure. Additionally, Snap will be closing over 300 job openings as part of this strategy. With around 5,261 employees reported as of December 2025, these cuts are projected to help reduce the company's annual costs by more than $500 million by the latter half of 2026, paving the way toward achieving profitability. The company acknowledged the challenging landscape it faces, stating that it is caught between large competitors with vast resources and agile startups. In response, Snap is shifting its focus to ensure sustainable growth. For employees affected by the layoffs in the U.S., the company is offering a severance package that includes four months of pay, healthcare benefits, equity vesting, and transition assistance. Snap is not alone in this wave of job cuts, as numerous tech firms, including Meta, Oracle, and Amazon, have also made significant reductions this year.