Cold Snap: CEO Spiegel embraces AI, lays off 1,000
Snapchat parent Snap Inc. has announced it is letting go of 1,000 employees, including roughly 16% of its full-time workforce. The announcement was made on Wednesday, alongside a decision to shut down more than 300 vacant roles.
In a note to staff, CEO Evan Spiegel acknowledged the impact of the move. “This is an incredibly difficult decision, and I am deeply sorry to the colleagues who will be leaving us. You have made important contributions to Snap, and we are committed to supporting you through this transition.”
Cost control
Spiegel referred to his earlier remarks, where he had described the company as being at a “crucible moment”, and said that it must adopt faster and more efficient ways of working while focusing on sustainable, profitable growth. Back then, he had outlined his ambition to turn direct revenue into "a durable multi-billion-dollar growth driver for Snap."
In the note, he said that, as part of this shift, the company expects to lower its annualised cost base by over $500 million by the second half of 2026. This, he said, should help create a clearer route to achieving net-income profitability.
Spiegel added that such “tough choices” were necessary to prioritise investments most likely to deliver long-term value.
Role of artificial intelligence
Spiegel also pointed to rapid developments in artificial intelligence as a key factor changing how teams operate. He said these tools are helping reduce repetitive tasks, improve speed, and better serve users, partners, and advertisers.
“We have already witnessed small squads leveraging AI tools to drive meaningful progress across several important initiatives, including Snapchat+, enhanced ad platform performance, and efficiency improvements in our Snap Lite infrastructure,” he said.
The California-based tech company joins a growing number of companies cutting jobs due to productivity gains driven by AI adoption.
Support for impacted employees
Spiegel then outlined support measures for affected staff. Employees in the United States will receive four months of severance pay, continued healthcare coverage, equity vesting, and assistance with career transitions.
For employees outside the US, the company said it will follow local regulations and aim to provide similar levels of support in line with regional norms.
Reports of the layoffs were first shared by Alex Heath, author of the Sources newsletter, although exact figures were not given. He also noted that Specs, a separate division focused on AR smart glasses, is continuing to hire.
Heath further reported that a widely discussed $400 million deal integration between Snap and Perplexity AI had fallen through. However, Spiegel did not address these in his message.
The announcement follows earlier news that Snap’s direct-revenue business reached a $1 billion annualised run rate in February. Much of this growth was driven by its Snapchat+ subscription service, as the company works to diversify beyond advertising.
In a note to staff, CEO Evan Spiegel acknowledged the impact of the move. “This is an incredibly difficult decision, and I am deeply sorry to the colleagues who will be leaving us. You have made important contributions to Snap, and we are committed to supporting you through this transition.”
Cost control
Spiegel referred to his earlier remarks, where he had described the company as being at a “crucible moment”, and said that it must adopt faster and more efficient ways of working while focusing on sustainable, profitable growth. Back then, he had outlined his ambition to turn direct revenue into "a durable multi-billion-dollar growth driver for Snap."
In the note, he said that, as part of this shift, the company expects to lower its annualised cost base by over $500 million by the second half of 2026. This, he said, should help create a clearer route to achieving net-income profitability.
Spiegel added that such “tough choices” were necessary to prioritise investments most likely to deliver long-term value.
Role of artificial intelligence
Spiegel also pointed to rapid developments in artificial intelligence as a key factor changing how teams operate. He said these tools are helping reduce repetitive tasks, improve speed, and better serve users, partners, and advertisers.
“We have already witnessed small squads leveraging AI tools to drive meaningful progress across several important initiatives, including Snapchat+, enhanced ad platform performance, and efficiency improvements in our Snap Lite infrastructure,” he said.
The California-based tech company joins a growing number of companies cutting jobs due to productivity gains driven by AI adoption.
Support for impacted employees
Spiegel then outlined support measures for affected staff. Employees in the United States will receive four months of severance pay, continued healthcare coverage, equity vesting, and assistance with career transitions.
For employees outside the US, the company said it will follow local regulations and aim to provide similar levels of support in line with regional norms.
Reports of the layoffs were first shared by Alex Heath, author of the Sources newsletter, although exact figures were not given. He also noted that Specs, a separate division focused on AR smart glasses, is continuing to hire.
Heath further reported that a widely discussed $400 million deal integration between Snap and Perplexity AI had fallen through. However, Spiegel did not address these in his message.
The announcement follows earlier news that Snap’s direct-revenue business reached a $1 billion annualised run rate in February. Much of this growth was driven by its Snapchat+ subscription service, as the company works to diversify beyond advertising.
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