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Snapchat owner cuts 16% of global staff in latest round of job cuts
The company said AI tools are reducing repetitive work as it targets more than $500 million in annualized savings by 2026.
- On Wednesday, Snap Inc. announced it will cut about 1,000 jobs, roughly 16% of its workforce, while closing more than 300 open roles to reduce costs and improve profitability.
- Spiegel described the company as facing a "crucible moment" amid slowing growth and competition, pivoting toward profitable growth by leveraging "rapid advancements in artificial intelligence" to enable smaller teams to work more efficiently.
- Impacted U.S. employees will receive four months of severance, healthcare coverage, and equity vesting. The restructuring expects to generate over $500 million in annualized cost savings by the second half of 2026.
- Snap stock rose over 11% to $6.23 in pre-market trading on Wednesday, while the company expects $95 million to $130 million in pre-tax restructuring charges, mostly for severance and related costs.
- The company plans to scale its subscription business and higher-margin ad placements, with 65% of new code generated by AI. Amazon, Oracle, and Meta announced similar layoffs last month, also citing efficiency improvements.
133 Articles
133 Articles
Disney and Snap Lay Off Thousands Citing AI and Technological Efficiency
Two major California-headquartered companies announced significant workforce reductions this week as part of broader efforts to streamline operations and adapt to rapid technological changes in the entertainment and tech sectors. The Walt Disney Co. is eliminating approximately 1,000 positions across its studios, TV businesses, ESPN, unified marketing organization, product and technology groups, and certain corporate functions. The cuts were det…
Snapchat CEO’s tasteless Coachella photos kissing supermodel wife Miranda Kerr despite jobs bloodbath
The billionaire app founder was seen partying with his supermodel wife Miranda Kerr in the California desert while his company plotted to lay off 1,000 workers.
Snap Layoffs: 1,000 Employees To Be Affected as CEO Evan Spiegel Cites AI Advancements and Pivot to Profitable Growth, Says Report | 📲 LatestLY
Snap Inc. is laying off 1,000 employees, or 16% of its workforce, to save USD 500 million annually by 2026. CEO Evan Spiegel cited AI advancements as a key driver for the restructuring, allowing the company to automate repetitive work. The cuts follow pressure from activist investors to reduce spending on AR projects. 📲 Snap Layoffs: 1,000 Employees To Be Affected as CEO Evan Spiegel Cites AI Advancements and Pivot to Profitable Growth, Says Re…
Snapchat parent company cuts 1,000 jobs in major AI-driven workforce restructuring
Snap on Wednesday announced plans to lay off roughly 1,000 employees as the tech company adopts artificial intelligence (AI) and looks to streamline its operations.The parent company of Snapchat will also close over 300 open roles as part of its workforce restructuring, which comes after Irenic Capital Management pushed Snap to optimize its portfolio and performance. The firm is an activist investor with an economic interest of roughly 2.5% in t…
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