Khaberni - Snap announced the layoff of about 16% of its global workforce, equivalent to around 1000 employees, in a step that reflects the accelerated adoption of artificial intelligence by tech companies for restructuring their operations.
CEO Evan Spiegel explained in an internal memo that the decision comes as part of the company's pursuit to achieve its long-term potential, benefiting from rapid developments in artificial intelligence technologies, which are now capable of reducing repetitive tasks and speeding up the workflow.
He pointed out that small teams within the company have already succeeded in using AI tools to make significant progress in a number of initiatives, including the "Snapchat +" service, enhancing the performance of the advertising platform, and improving the infrastructure efficiency of the "Snap Lite" application, according to a report published by "TechCrunch".
The plan also includes eliminating more than 300 vacant positions, at a time when the company's workforce numbered about 5261 employees by the end of 2025.
"Snap" expects that these measures will contribute to reducing annual costs by more than 500 million dollars by the second half of 2026, as part of its strategy towards achieving sustainable net profitability.
The company emphasized that it faces increasing pressures from giant companies with enormous resources, alongside rapidly growing startups, pushing it to adopt a more efficient business model focused on profitable growth.
Employees affected in the United States are set to receive compensations including four months of salaries, along with health coverage and support for career transition.
Thus, "Snap" joins an increasing list of technology companies that have announced layoffs during the current year, including "Meta", "Oracle", and "Amazon", amidst a broad race to reallocate resources towards artificial intelligence.
