Billionaire CEO Evan Spiegel announced in a memo that Snap is cutting 16% of its workforce. The company plans to lay off about 1,000 employees, with an additional 300 open roles eliminated. Spiegel instructed North American employees to work from home and await further news. The layoffs are part of a broader strategy to cut annual costs by $500 million by year-end, largely driven by advances in artificial intelligence. The company has observed AI being used effectively to streamline operations and enhance initiatives. Meanwhile, activist investor Irenic Capital Management has urged Snap to make these changes and further integrate AI into their practices. Notably, Snap’s planned $400 million partnership with AI firm Perplexity has dissolved, which would have brought AI search capabilities to Snapchat. The layoffs highlight the increasing role of AI in job eliminations within the tech industry.
Snap Announces Significant Layoffs Following Perplexity Deal Collapse
1 Min Read