Snap Inc. has laid off about 1,000 employees, saying rapid advances in artificial intelligence are helping the company streamline operations and improve efficiency as it pushes toward profitability.
Chief Executive Evan Spiegel disclosed the decision in a memo, noting that the cuts represent roughly 16 percent of Snap’s full-time workforce, alongside the removal of more than 300 vacant roles.
“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.
He added that smaller teams are already using AI tools to accelerate work across key projects, but acknowledged the decision was painful for affected staff.
“This is an incredibly difficult decision, and I am deeply sorry to the colleagues who will be leaving us,” he said.
Snap said the restructuring is expected to reduce annual costs by more than $500 million by the second half of the year, strengthening its path toward net-income profitability.
The company has repeatedly trimmed its workforce over the past four years as it faces intense competition from platforms like Instagram, TikTok, and YouTube.
The latest layoffs come as investor pressure mounts, including from activist fund Irenic Capital Management, which recently urged cost cuts and a review of non-core units such as its Spectacles smart glasses division.
Following the announcement, Snap shares rose over 7 percent in after-hours trading, though the stock remains down for the year.
