About 1,000 Roles Eliminated
Snap is reducing its global workforce by approximately 16%, affecting around 1,000 full-time employees, according to a memo from CEO Evan Spiegel disclosed in a filing with the U.S. Securities and Exchange Commission.
The company employed about 5,261 full-time staff as of December 2025. In addition to the layoffs, Snap said it will close more than 300 open positions.
AI Advancements Cited as Driver
Spiegel said rapid advances in artificial intelligence are reshaping how teams operate, enabling automation of repetitive tasks and accelerating product development.
In the memo, he noted that smaller teams using AI tools have already delivered progress across initiatives such as Snapchat+, improvements to the advertising platform and infrastructure efficiencies within Snap Lite.
The company indicated that leveraging AI capabilities will help streamline operations while supporting its user community, advertising partners and broader ecosystem.
Cost Savings and Profitability Goals
Snap expects the restructuring to lower its annualized cost base by more than $500 million by the second half of 2026. The move is intended to create what the company described as a clearer path toward sustained net-income profitability.
In materials shared with investors, Snap characterized the current environment as a pivotal period, citing pressure from larger technology platforms with extensive resources as well as emerging startups moving quickly. The company said it is shifting its focus toward profitable growth.
Severance and Industry Context
U.S.-based employees affected by the layoffs will receive four months of severance, continued healthcare coverage, accelerated equity vesting and transition assistance.
Snap joins other technology companies that have announced workforce reductions this year, including Meta, Oracle and Amazon, as firms adjust cost structures and integrate AI-driven efficiencies.
