Snap Inc. plans to eliminate approximately 1,000 positions, representing 16% of its total employees, as it shifts toward greater use of artificial intelligence. CEO Evan Spiegel detailed the reductions in an internal message to all staff, noting that over 300 vacant positions will also be eliminated.
Spiegel described the choice as extremely challenging, projecting savings exceeding $500 million starting in the latter part of 2026, which should pave the way for achieving profitability on a net-income basis. Employees affected received notifications via email, and the North American workforce was directed to operate remotely. The company committed to offering four months of severance pay, along with continued health benefits and additional perks for those impacted.
In the memo, Spiegel explained that although the adjustments are essential for unlocking Snap's future growth, progress in AI allows employees to eliminate routine tasks, accelerate operations, and more effectively serve users, collaborators, and marketing clients. He highlighted instances where compact teams have employed AI to advance key projects, such as enhancements to Snapchat+, optimizations in advertising systems, and upgrades to the Snap Lite platform's performance.
This move builds on prior workforce reductions at Snap, including a 20% cut in 2022 and additional trims in 2023 and 2024. It aligns with a broader trend among technology firms replacing staff with AI to enhance productivity, seen recently at companies like Amazon, Fiverr, Microsoft, and Pinterest. Meanwhile, Snap anticipates releasing its consumer-oriented Specs augmented-reality eyewear by year's end and has recently established the brand as a separate entity.