Snapchat CEO lays off 1,000, citing ‘rapid advancements' in AI

Snap, the parent company of popular social media app Snapchat, said Wednesday it will lay off about 1,000 employees - roughly 16% of its full-time workforce - as it pivots more aggressively toward artificial intelligence and looks to cut costs.

The job cuts were disclosed in a publicly shared employee memo from CEO Evan Spiegel. The company, founded by a group of Stanford students, also plans to eliminate more than 300 open positions and expects to reduce its annual costs by more than $500 million by the second half of 2026.

"While these changes are necessary to realize 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," Spiegel wrote.

In an investor update, the company said more than 65% of its new code is now generated by AI, allowing smaller teams to handle work that previously required larger groups. The company plans to rely more on a mix of human employees and "increasingly capable AI agents."

Industrywide, tens of thousands of jobs have been cut this year as companies cite automation and efficiency gains, according to data compiled by Layoffs.fyi.

Spiegel said U.S.-based employees affected by the layoffs will receive four months of severance, healthcare coverage, equity vesting and career transition support. He also told North American employees to work from home Wednesday as notifications were sent.

The restructuring follows pressure from activist investor Irenic Capital Management, which has urged Snap to cut costs and improve performance. Snap reported 5,261 full-time employees as of December.

Shares rose in early trading Wednesday, though the stock remains down sharply this year.

Snap is scheduled to report its next earnings on May 6.

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