US EditionSnapchat 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.
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113 Articles
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…
Snap Inc. slashes about 1,000 jobs
(NBC, KYMA) - Snap Inc. is laying off 16% of its workforce. The parent company of Snapchat says it's cutting approximately a thousand jobs and closing more than 300 open roles. In a letter to staff, CEO Evan Spiegel pointed to advancements in artificial intelligence (AI) as a key driver for the layoffs, saying it has helped reduce repetitive work. Snap joins a wave of tech companies cutting staff this year as AI is reshaping the workforce by aut…
Stock Market Today, April 15: Snap Jumps After Announcing 1,000 Job Cuts and $500 Million Cost Savings Plan
Snap (NYSE:SNAP), a social media technology platform, closed at $6.03, up 7.68%. The stock moved higher after announcing restructuring news detailing 16% workforce reductions, over $500 million in targeted cost savings, and a shift to an AI-focused strategy. Trading volume reached 143.9 million shares, coming in about 161% above its three-month average of 55.2 million shares. Snap IPO'd in 2017 and has fallen 75% since going public.How the marke…
Snap, mother company of the Snapchat social network, announced that it will grant 16% of the global labour force, that is, about 1,000 employees.
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