Snap Cuts 1,000 Jobs, Citing AI Shift

Snap Inc. announced it will eliminate 1,000 jobs, about 16% of its workforce, as part of a restructuring that explicitly credits artificial intelligence with reducing repetitive work.

Snap Announces 1,000 Job Cuts

Snap Inc., the parent company of Snapchat, announced on Wednesday that it will cut 1,000 jobs, representing about 16% of its workforce. The company also said it will close more than 300 open roles. The restructuring is driven by Snap's embrace of AI capabilities, according to the announcement.

AI Cited as Key Factor

In a letter to employees posted online, CEO Evan Spiegel said rapid advancements in artificial intelligence enable teams to reduce repetitive work, increase velocity, and better support the community, partners, and advertisers. He noted that small squads are already leveraging AI tools to drive progress on initiatives including Snapchat+, enhanced ad platform performance, and efficiency improvements in Snap Lite infrastructure.

According to CNBC, AI agents are generating over 65% of Snap's new code and responding to over 1 million queries per month.

Financial Details and Outlook

The restructuring is expected to cost between $95 million and $130 million in the second quarter. Snap is forecasting revenue of $1.5 billion for the first quarter, an annual increase of 12%. The company had about 5,261 full-time employees as of December 2025.

Investor Pressure and Stock Movement

The AI-driven restructuring aligns with pressure from activist investor Irenic Capital Management, which holds a 2.5% stake in Snap. In March, the firm sent a letter to Spiegel recommending workforce reductions of 1,000 employees—21% of staff at the time. Irenic stated that AI can and should replace many existing roles. Before the announcement, Snap's stock had dropped more than 30% year-to-date. Following the news, the stock rose about 8% from Tuesday's close to Wednesday's close, though it was down about 1% on Thursday to a recent price of $5.97.

Broader Tech Layoffs

The cuts at Snap are part of a wider trend of cost-cutting across the technology and media sectors. Meta has faced scrutiny over job cuts as part of broader industry layoffs. In February, Jack Dorsey's payments firm Block shed over 4,000 jobs—representing 40% of its workforce—while similarly crediting AI's ability to take over past duties of human workers. Additionally, the BBC and Disney have announced thousands of redundancies, with Disney also pointing to AI as a major reason for its cuts.

Australian Operations

Snap runs Australian operations that may be impacted by the job losses. ASIC filings from 2023 showed the company had 64 staff in Australia. Mumbrella has contacted Snap's local office about the impact on Australian operations.

Snap to Cut 1,000 Jobs, Citing AI Shift