Snap is laying off around 1,000 employees, representing about 16% of its workforce, as part of a broader effort to reduce costs and move toward profitability.
The company is also closing 300 open roles. The restructuring is expected to generate savings of $500 million by the second half of 2026. Snap reported having approximately 5,261 full-time employees as of December 2025.
CEO Evan Spiegel said the decision reflects a shift toward using artificial intelligence to improve productivity. He noted that AI tools are already helping smaller teams complete tasks more efficiently and accelerate progress across key projects.
The company believes AI can reduce repetitive work, increase operational speed, and better support users, partners, and advertisers.
Snap joins a growing list of technology companies that have announced layoffs this year, including Meta, Amazon, Oracle, GoPro, and Block.
Spiegel described the move as part of a broader effort to reshape how the company operates. He said Snap has reviewed its priorities over recent months and made decisions to focus on investments that are expected to deliver long-term value.
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