Khaberni - Snapchat has announced the layoff of approximately 16% of its employees worldwide, affecting about one thousand full-time employees, according to a memo issued by CEO Evan Spiegel.
The company attributed these layoffs to developments in artificial intelligence.
The memo, which was published in a filing with the U.S. Securities and Exchange Commission, states: "While these changes are necessary to realize Snap's long-term potential, we have seen small teams leverage AI tools to make significant progress on many important initiatives, including Snapchat Plus, improving the performance of the advertising platform, and enhancing the efficiency of the Snap Lite infrastructure."
Spiegel also added that the company is in the process of closing over 300 vacant positions. As of December/January 2025, Snap had about 5261 full-time employees.
The company says that these reductions will allow it to cut its annual cost base by more than $500 million by the second half of 2026, which will help "set a clearer path towards net profitability."
In a presentation to investors, the company wrote: "Snap is facing a critical moment - caught between giants with vast resources and fast-moving startups. To navigate this moment, we are moving towards profitable growth."
Employees in the United States will receive four months of severance pay, health coverage, stock entitlements, and transition support.
The company joins a growing list of technology firms that have seen significant cuts this year, including Meta, Oracle, and Amazon.
