Snap Inc., the parent company of Snapchat, is laying off approximately 1,000 employees, representing 16% of its global workforce. The cuts come as CEO Evan Spiegel aims to reduce costs and achieve profitability, while also citing rapid advancements in artificial intelligence. The company is also closing over 300 open positions.
The decision follows pressure from activist investor Irenic Capital Management, which publicly called for cost reductions and a smaller headcount last month. Spiegel indicated the layoffs would streamline operations and allow the company to pursue over $500 million in annual cost savings.
Severance payments and related costs associated with the job cuts are estimated to be between $95 million and $130 million. As of December 2025, Snap had around 5,261 full-time employees.
The company believes increased reliance on artificial intelligence will help fill the gap left by the workforce reduction and drive efficiency.