Snap Inc. Cuts 1,000 Jobs as AI Takes Over Core Engineering Tasks

Snap Inc., the parent company of Snapchat, announced that it will lay off about 1,000 employees, representing roughly 16% of its global workforce. The company is also closing around 300 open positions as it shifts toward greater reliance on artificial intelligence tools. CEO Evan Spiegel informed staff that the move aims to improve efficiency and profitability through automation.

The company stated that AI now generates more than 65% of its new code, a significant increase from previous years. This automation is enabling smaller engineering teams to deliver projects faster and with fewer resources. Spiegel said the changes would help reduce repetitive tasks and allow teams to focus on higher-priority work.

The layoffs follow pressure from activist investor Irenic Capital Management, which has urged Snap to cut costs and streamline operations. The company expects to reduce annual expenses by more than $500 million by the second half of the year, with layoff-related charges estimated between $95 million and $130 million.

Snap’s stock rose around 7% following the announcement, recovering part of its earlier losses. The company reported that its first-quarter revenue is expected to reach approximately $1.5 billion, an increase of about 12% year over year. Snap is scheduled to report its next earnings on May 6.