Snapchat cuts 1,000 jobs as AI push accelerates path to profitability

Snap Inc., Snapchat’s parent company, has cut about 1,000 jobs as it increases its use of artificial intelligence to simplify operations and increase profitability.

The layoffs will affect about 16 percent of Snap’s full-time workforce and include the elimination of more than 300 unfilled roles, according to a memo from chief executive Evan Spiegel.

“We believe that rapid advances in artificial intelligence allow our teams to reduce repetitive work, increase speed, and provide better support to our community, partners and advertisers,” Spiegel wrote, adding that smaller teams using AI tools have driven “meaningful progress.”

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The move places Snap among a growing group of technology companies that are reducing headcount while highlighting productivity gains from AI adoption. Data from Layoffs.fyi shows that more than 72,000 employees have been laid off by nearly 90 technology companies so far this year.

Snap said the restructuring is expected to cut annual costs by more than $500 million in the second half of this year, creating a “clearer path to net revenue profitability.” Spiegel described the decision as a difficult one and apologized to the employees affected.

The company has seen several layoffs in recent years as it competes with rivals including Instagram, TikTok and YouTube, and faced investor pressure after activist firm Irenic Capital Management announced it owned a 2.5 percent stake and pushed for tighter cost controls.