Snap is laying off about 16 percent of its global workforce. This is a cost-cutting measure, and the goal is improved profitability with the help of AI. Layoffs are affecting about 1,000 full-time employees, and additional 300 open roles are also being closed, as reported by The Verge.
Snap CEO Evan Spiegel sent a memo to staff stating these changes, which are "necessary to realize Snap's long-term potential". And as expected, AI is the answer to improved profitability. These new changes are expected to save Snap $500 million by the second half of 2026.
Many other tech companies have announced significant layoffs this year, these including Meta, Amazon, Oracle, GoPro and Jack Dorsey's Block.