Snap is cutting around 1,000 jobs, reducing its total workforce by 16%, as CEO Evan Spiegel ties the snap layoffs directly to AI advancements and a push toward long-term profitability.
Spiegel outlined the decision in a company-wide memo on 15 April. He described AI tools as enabling workers to “reduce repetitive work and increase velocity”, framing the restructuring as a structural shift rather than a crisis response. The total includes around 300 open roles that Snap will leave unfilled. The company expects the changes to reduce annual costs by more than $500m in the second half of the year.
Snap shares rose more than 7.75% in pre-market trading following the announcement. Even so, the stock has fallen roughly 30% over the past year, reflecting sustained pressure on the company’s advertising business and user growth.
Snap layoffs part of an industry-wide AI trend
Spiegel joins a growing list of executives linking workforce reductions to AI. In February, Jack Dorsey cut 4,000 jobs at Block, citing AI tools and the structural advantages of smaller, flatter teams. Atlassian followed with a 10% workforce cut. Meta laid off several hundred employees. Oracle eliminated thousands of roles. In each case, AI was cited as part of the reasoning.
Dorsey argued that “a majority of companies” will reach similar conclusions about team size and make comparable structural changes within the next year. Spiegel’s memo signals the same direction at Snap, with the CEO noting that small teams already using AI tools have delivered measurable improvements to the company’s ad platform.
For Snap, this marks the third significant round of cuts in three years. The company shed 500 roles in 2024, saying the changes would “reduce hierarchy and promote in-person collaboration”. Before that, it cut roughly 20% of its workforce in 2022 to steady the business after a difficult period for digital advertising.
Perplexity deal axed as Snap refocuses its strategy
The snap layoffs come alongside a notable strategic retreat. Snap has cancelled its $400m deal with Perplexity, announced last November. The partnership was set to bring Perplexity’s conversational search into Snapchat, turning parts of the app into a space where AI companies could connect with its user base. Journalist Alex Heath first reported the cancellation.
The scrapped deal signals a tighter focus on Snap’s core ad business rather than experimental AI integrations. Snap also continues to face regulatory pressure over child safety on multiple fronts. Snapchat is banned for users under 16 in Australia, and the platform faces scrutiny in other markets over content access and protections for younger users.