Snap joins the wave of layoffs in the tech industry resulting from the implementation of artificial intelligence (AI). The company has announced the departure of nearly 1,000 full-time employees, representing 16% of its global workforce, as part of an effort by CEO Evan Spiegel’s management team to reduce costs and achieve profitability. The company is also eliminating more than 300 vacant positions.
At the beginning of 2024, Snap announced the layoff of 10% of its workforce to cut costs; a reduction that then affected more than 500 employees.
But Snap is not the only tech company that has implemented significant workforce adjustments. Meta, Oracle, Salesforce, Pinterest, Amazon, Autodesk, and Atlassian, among others, have announced thousands of layoffs. According to the specialized firm Challenger, Gray & Christmas, layoffs in the U.S. tech sector are at their worst point since 2023 so far this year. Thus, U.S.-based tech companies announced 52,050 job cuts in the first quarter of 2026, a figure that represents a 40% increase.
The announcement of the adjustment was well received by the markets. Snap’s shares surged nearly 9% at the opening, although the advance slowed as the hours passed. Since the beginning of the year, the shares have dropped around 27%.
In a memo sent to employees on Wednesday morning, according to Bloomberg, Spiegel stated that the cuts are necessary for Snap to increase its efficiency in its pursuit of profitable growth.
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The executive cited improvements in artificial intelligence technology that allow Snap employees to work faster. Spiegel informed employees, many of whom were instructed to work from home on Wednesday, that the staff cuts and hiring freeze will reduce Snap’s annualized cost base by more than $500 million in the second half of the year.
Regarding the evolution of its accounts, Snap estimated that total revenues increased by 12% to reach $1.53 billion in the first quarter, according to updated information for investors.
Meanwhile, earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at $233 million during that period.
The layoffs come just weeks after activist investor Irenic Capital Management acquired a stake in the company and demanded swift changes to improve its financial performance, including recommending that Snap reduce its workforce in hopes of boosting the stock price.
