Snap lays off 16% of workforce, cites AI efficiency gains

Snap is cutting approximately 1,000 employees, representing 16 percent of its total workforce, while attributing the reductions to advancements in artificial intelligence. CEO Evan Spiegel announced the layoffs in a company-wide memo, describing the decision as "incredibly difficult" but necessary to establish a clearer path to net-income profitability. The company estimates the cuts will save more than $500 million Affected employees in North America were instructed to work from home and will receive four-month severance packages along with healthcare and other entitlements. Snap is also eliminating more than 300 open positions. Spiegel stated that rapid AI advancements enable teams to reduce repetitive work, increase velocity, and improve support for Snap's community, partners, and advertisers. He cited examples of small teams already using AI tools to drive progress in areas including Snapchat+, ad platform performance, and Snap Lite infrastructure efficiency. This marks the latest in a series of workforce reductions at Snap, which laid off around 20 percent of employees in 2022 with additional cuts in 2023 and 2024. The company joins several other technology firms that have cited AI efficiency gains while reducing staff, including Amazon, Microsoft, and Pinterest. Snap is preparing to launch the consumer version of its Spectacles augmented reality glasses later this year and recently established the brand as a separate business unit.