Snap is reducing approximately 16% of its global workforce, affecting around 1,000 employees, as stated in a memo to staff from Snap CEO Evan Spiegel. The company attributes the layoffs to AI advancements.
“These changes are essential for Snap’s long-term potential, as rapid AI advancements allow our teams to decrease repetitive tasks, enhance speed, and better support our community, partners, and advertisers,” the memo, which was publicly shared through an SEC filing, states. “We have already seen small teams using AI tools to make significant progress in several initiatives, such as Snapchat+, improved ad platform performance, and efficiency in Snap Lite infrastructure.”
Spiegel added that Snap is also closing over 300 open positions. Snap had about 5,261 full-time employees as of December 2025.
The company aims to reduce its annualized cost base by over $500 million by the latter half of 2026, helping to “create a clearer path to net-income profitability.”
“Snap is at a critical moment, pressured between giants with vast resources and agile startups,” the company stated in a presentation to investors. “To navigate this, we are shifting towards profitable growth.”
U.S.-based employees will receive four months of severance, healthcare coverage, equity vesting, and transition support.
Snap joins a growing number of tech companies making significant cuts this year, such as Meta, Oracle, and Amazon.