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Snap Inc., the company behind Snapchat, announced on Wednesday that it will reduce its global workforce by up to 16%, impacting approximately 1,000 employees and eliminating around 300 open positions. The move is part of a broader strategy to incorporate artificial intelligence (AI) tools across many of its operations.
CEO Evan Spiegel communicated to staff that AI advancements will help the company streamline repetitive tasks, increase operational speed, and better serve its users, partners, and advertisers. Spiegel emphasized that these technological improvements are expected to enhance both efficiency and profitability.
Following the announcement, Snap’s stock price rose by about 7%. The decision comes after recent pressure from activist investors, including Irenic Capital Management, which urged the company to reduce costs and workforce by leveraging AI technologies.
Snap shared that AI currently contributes to producing nearly two-thirds of its new software code and handles over a million inquiries monthly. A company spokesperson described the layoffs as “incredibly difficult,” but necessary to realign resources with the firm’s key priorities.
This development aligns with a growing trend among tech companies adopting AI while implementing workforce reductions. Industry leaders such as Amazon, Oracle, Microsoft, Uber, and Block have similarly cut staff numbers, citing AI integration as a factor.
Snap, which was founded in 2011 and employed about 5,000 people last year, has projected first-quarter 2026 revenue of $1.5 billion, marking a 12% increase. The company continues to navigate the evolving tech landscape by balancing innovation with operational adjustments.