Snapchat announced plans to reduce the size of its workforce by approximately 16% globally, affecting about 1,000 full-time employees, according to a letter from CEO Evan Spiegel.
The company attributes these actions to accelerated developments in the field of artificial intelligence.
“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 several important initiatives, including Snapchat Plus, improving the performance of the advertising platform, and increasing the efficiency of the Snap Lite infrastructure,” the memo submitted to the US Securities and Exchange Commission said.
Spiegel also indicated that the company will stop hiring for more than 300 vacant positions. It is worth noting that the number of full-time Snap employees reached approximately 5,261 employees as of January 2025.
The company asserts that these reductions will help it reduce annual costs by more than $500 million by the second half of 2026, which contributes to “setting a clearer path to achieving net profitability.”
In a presentation to investors, the company said: “Snap faces a critical moment — sandwiched between deep-pocketed giants and fast-moving startups. To meet this moment, we are moving toward profitable growth.”
US-based employees will receive a severance package that includes 4 months of salary, health coverage, stock rights, as well as career transition support.
Snapchat joins a growing list of technology companies that have seen major layoffs this year, including Meta, Oracle, and Amazon.
