Snap to lay off 1,000 employees, about 16% of the workforce

Snap Inc. is reducing its global workforce by approximately 16%, affecting close to 1,000 full-time employees, according to an internal memo shared by CEO Evan Spiegel on Wednesday. The company pointed to ongoing advancements in artificial intelligence as a key factor behind the decision.

In the memo, which was later disclosed through a filing with the U.S. Securities and Exchange Commission, Spiegel explained that the restructuring is intended to position the company for long-term growth. He noted that improvements in AI are enabling teams to streamline repetitive tasks, accelerate development, and better serve users, partners, and advertisers.

“While these changes are necessary to realise 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,” the statement said. “We have already seen smaller teams using AI tools to make meaningful progress across several initiatives, including Snapchat+, improvements in our advertising platform, and greater efficiency within Snap Lite infrastructure.”

Spiegel also confirmed that the company will eliminate more than 300 currently open positions. As of December 2025, Snap employed approximately 5,261 full-time workers.

According to the company, the layoffs are expected to reduce its annual costs by more than $500 million by the second half of 2026. This move is part of a broader effort to create a clearer path toward achieving net-income profitability.

In a presentation to investors, Snap described its current position as a critical turning point, highlighting competitive pressure from both large technology companies with extensive resources and smaller, fast-moving startups. “Snap faces a crucible moment — squeezed between giants with enormous resources and nimble startups moving fast,” the company stated. “To meet this moment, we are pivoting toward profitable growth.”

Employees in the United States who are affected by the layoffs will receive a severance package that includes four months of pay, continued healthcare coverage, equity vesting, and assistance with transitioning to new roles.

Snap’s announcement adds to a broader trend across the technology sector, where several major companies — including Meta, Oracle, and Amazon — have also implemented significant workforce reductions this year.