Snap cuts 1000 jobs blaming AI

Snap cut approximately 1,000 full-time employees in April 2026, representing 16% of its global workforce, and closed more than 300 open roles that will no longer be filled. The move is expected to reduce the company's annualized cost base by more than $500 million by the second half of 2026.

Why is Snap cutting staff

CEO Evan Spiegel sent a memo to staff framing the cuts around AI efficiency. He said small teams using AI tools have already driven progress across Snapchat+, ad platform performance, and infrastructure, with AI now generating over 65% of new code at the company. 

The restructuring is also designed to establish what Spiegel called a clearer path to net-income profitability, after Snap described itself as facing a "crucible moment" squeezed between well-resourced giants and fast-moving startups.

Activist investor Irenic Capital Management, which holds a 2.5% stake in Snap, had been pushing for cost reductions ahead of the announcement. Snap had 5,261 full-time employees as of December 31, 2025, according to its latest annual report.

Severance and costs

US employees leaving the company, as per a third-party source - CNBC, will receive four months of severance pay, continued healthcare coverage, equity vesting, and transition support. Snap estimates the layoff-related charges will come in between $95 million and $130 million, most of which will hit in the second quarter of 2026.

What is protected

Despite the cuts, Snap is pressing ahead with its augmented reality glasses, known as Specs, which are still scheduled to launch later this year. Irenic Capital had urged Snap to either spin off or shut down the Specs unit, which has received $3.5 billion in investment, but the company appears to be keeping it intact as part of its long-term strategy.

Snap's stock rose more than 11% in pre-market trading following the announcement, suggesting investors viewed the restructuring positively despite the scale of the cuts.