Snap Inc., the parent company of Snapchat, announced on Wednesday that it will lay off about 1,000 employees as it speeds up its shift toward artificial intelligence (AI) and cuts business costs.
The company is also closing more than 300 open job positions as part of a broader restructuring plan aimed at making operations leaner and more efficient.
The layoffs represent about 16% of Snap's full-time workforce, which stood at roughly 5,261 employees as of December.
Company leaders said the changes reflect how AI is already transforming how work gets done inside the tech firm, with more than 65% of new code now being generated with AI support, FoxBusiness reported.
Snap said it is focusing human teams on more complex tasks while using AI tools and agents to handle routine work.
Snap CEO Evan Spiegel said the company expects to reduce more than $500 million in annual costs by the second half of the year.
The savings will come mainly from job cuts, lower operating expenses, and reduced stock-based compensation.
On the same day as the announcement, Spiegel also asked North American employees to work from home.
Snapchat owner cuts 1,000 jobs as says AI will reduce repetitive work https://t.co/burjbD35rp
— BBC News (UK) (@BBCNews) April 15, 2026
Snap Stock Rises After 1,000 Job Cuts
The restructuring comes after pressure from activist investor Irenic Capital Management, which owns about 2.5% of Snap.
The firm has pushed the company to improve efficiency and rethink parts of its business strategy.
Snap has also been investing heavily in its augmented reality glasses project called Specs, which is planned for launch later this year.
Some investors have questioned whether Snap should scale back or even shut down certain long-term projects to save money.
According to Yahoo, Irenic Capital has suggested spinning off or closing the Specs division, which has already received about $3.5 billion in investment.
Despite the layoffs, Snap's stock rose nearly 8% on Wednesday after the news. However, the stock remains down about 25.7% for the year, even after a recent monthly gain.
Financial analysts say the company's direction is still uncertain. Russ Mould, investment director at AJ Bell, noted that while cost-cutting may help calm investor concerns, it does not guarantee long-term success or a stronger business model.
Snap expects layoff-related costs between $95 million and $130 million, most of which will be recorded in the second quarter.
Originally published on vcpost.com
