Snap is cutting roughly 16% of its global workforce in a move that will impact around 1,000 full-time employees, according to a memo from CEO Evan Spiegel that was shared with staff and later made public through an SEC filing. The layoffs come as the Snapchat parent company leans further into artificial intelligence, saying AI improvements are changing how work gets done across the business.
In the memo, Spiegel said rapid advances in AI are helping teams reduce repetitive tasks, move faster, and better support Snapchat’s community, partners, and advertisers. He pointed to early results from smaller teams using AI tools to push forward key priorities, including growth and improvements tied to Snapchat+, stronger ad platform performance, and efficiency gains within the company’s lighter-weight Snap Lite infrastructure.
Alongside the job cuts, Snap is also closing more than 300 open positions, signaling a broader reset in hiring plans. Snap reported having about 5,261 full-time employees as of December 2025, putting this reduction among the company’s biggest workforce changes in recent years.
Snap says the layoffs are part of a cost-cutting strategy designed to reduce its annualized cost base by more than $500 million by the second half of 2026. The company believes these savings will help “establish a clearer path to net-income profitability,” a key goal as investors and markets continue to demand more sustainable financial performance from major tech platforms.
In materials prepared for investors, Snap described the current environment as a high-pressure test, competing against larger rivals with deep resources while also facing fast-moving startups. The company framed the layoffs and role closures as part of a pivot toward profitable growth and a more focused operating structure.
For U.S.-based employees affected by the layoffs, Snap plans to provide four months of severance, continued healthcare coverage, equity vesting, and transition support.
Snap’s decision also fits into a broader wave of tech industry belt-tightening in 2026, as major companies continue to restructure, cut costs, and invest heavily in AI-driven productivity.
