Snap to cut 1,000 jobs as CEO points to AI-driven efficiency

Workforce reduction

Snap, the parent company of Snapchat, has announced plans to eliminate 1,000 jobs, affecting 16% of its current employees. The company is also closing 300 open roles.

The reduction is designed to streamline operations and shift resources toward Snap’s highest-priority initiatives. In an SEC filing, the company linked the changes to increased operational efficiency and its effort to accelerate a path to net-income profitability.

AI cited alongside profitability strategy

Chief executive Evan Spiegel said advances in artificial intelligence are part of the company’s rationale for changing how teams work. He said smaller groups using AI tools had already made progress on initiatives including Snapchat+, advertising platform performance and efficiency work in Snap Lite infrastructure.

The company described AI as a way to reduce repetitive work, increase the pace of work and provide better support for its community, partners and advertisers. The job cuts are therefore tied both to AI-related operational changes and to Snap’s broader profitability strategy, rather than being presented solely as an AI replacement programme.

Snap expects the restructuring to reduce its annualised cost base by more than $500 million by the second half of 2026. Spiegel said the savings are intended to establish a clearer route to net-income profitability.

Charges and employee support

Snap expects pre-tax charges of $95 million to $130 million from the layoffs. The costs are expected to include severance and related expenses, contract termination costs and other impairment charges.

Of those charges, $75 million to $100 million are expected to be future cash expenditures. The majority of the costs are expected during the second quarter of 2026.

The company said U.S.-based employees leaving Snap will receive four months of severance, healthcare coverage, equity vesting and career transition support. For employees outside the U.S., Snap said it would follow local processes and seek comparable support consistent with local norms.

Financial outlook

Alongside the restructuring announcement, Snap updated its first-quarter 2026 outlook. It estimates total revenue of $1.529 billion, up 12% year over year, and adjusted EBITDA of $233 million, compared with $108 million in Q1 2025.

Snap is scheduled to report its Q1 results on Wednesday, May 6, after market close. For full-year 2025, the company reported revenue of $5.931 million, up 11%, and a net loss of $460 million, compared with $698 million in the prior year. Snapchat reached 946 million global monthly active users in Q4 of 2025, up 6% year over year.

Sources

• Snapchat Layoffs Hit 1,000 Staffers, CEO Evan Spiegel Cites AI