Snap to cut 1,000 jobs as AI reshapes workforce

Snap said it will cut about 1,000 jobs, or 16% of its full-time workforce as it expands the use of AI to streamline its operations.

The company added that advances in AI are enabling it to run more efficiently with leaner teams, with AI now generating over 65% of new code, while more critical tasks are being handled by specialized teams and AI agents.

Snap has also closed more than 300 open roles as it moves to cut costs, weeks after activist investor Irenic Capital Management called for changes.

Snap had about 5,261 full-time employees at the end of December 2025.

It said the cuts should lower annualized expenses by more than US$500 million by the second half of this year.

The stock rose nearly 9% in premarket trading but remains down about 31% this year.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

Snap is justifying layoffs with a specific AI strategy

Snap CEO Evan Spiegel linked the layoffs to “rapid advancements in AI,” which he said let smaller teams move faster 1.
Snap’s investor presentation says AI now produces more than 65% of the company’s new code 2.
The decision comes after pressure from activist investor Irenic Capital Management, an investment firm that pushes companies to boost returns. It urged Snap to cut costs by spinning off or shutting down its Specs augmented reality glasses business, a product line that has received US$3.5 billion in investment 3.
Snap expects the restructuring to cost US$95 million to US$130 million in pre-tax charges, mostly for severance and related expenses 4.

AI is becoming the new corporate rationale for restructuring

Leaders often lean on AI to frame cost cuts as planning for the future, instead of reacting to weak business results 1.
Investors accepted that framing, as Snap’s shares rose after the announcement 3.
Meta, Amazon, and Block have also tied large layoffs to a shift toward AI plus higher productivity 5.
Job cuts now get explained through a different lens, as roles tied to what Snap calls “repetitive work” get described as tasks AI tools can shrink 2.