Snap, the parent company of Snapchat, has announced a significant restructuring plan that will see the company reduce its global workforce by approximately 16%, affecting about 1,000 employees.
The decision was shared in a memo from CEO Evan Spiegel, who described the current period as a “crucible moment” for the business. Spiegel noted that the company has spent several months reviewing its internal structures to determine where investments can provide the most long-term value.
Along with the job cuts, Snap is closing more than 300 open positions, with the goal of reducing its annualized cost base by over $500 million by the second half of 2026.
A central theme of this reorganization is the rapid integration of AI. Spiegel told staff that advancements in the technology allow the company to reduce repetitive tasks and increase the speed of project development. This shift is already visible in several areas of the business.
For instance, the company recently reported that more than 65 per cent of its new code is now generated by AI, which allows smaller, more agile squads to manage projects that previously required much larger teams. Snap is also looking to AI to bolster its advertising platform and infrastructure.
The company expects to take a pre-tax charge between $95 million and $130 million related to the layoffs, primarily covering severance and contract termination costs. Despite the immediate costs, investors reacted positively to the news, with Snap’s shares rising in early trading following the announcement.
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