Snap will cut about 1,000 jobs, which is 16% of its workforce, as the company seeks to reduce expenses and rely more on artificial intelligence to run its business.
Snap confirmed the cuts on Wednesday and will also close more than 300 open roles. The decision follows pressure from Irenic Capital Management, which recently built a 2.5% stake and called for changes to improve performance.
Irenic had urged the company to trim its workforce, review its investments and consider spinning off or shutting down its augmented reality unit, Specs.
Snap said improvements in artificial intelligence are already helping it reduce repetitive work. That shift, it added, means it can operate with fewer staff while keeping output steady.
Chief executive Evan Spiegel told employees the company expects to save more than $500 million a year by the second half of 2026. Those savings will come mainly from lower costs of operations and reduced stock-based compensation.
The company expects to take charges of between $95 million and $130 million linked to the layoffs. Most of that will fall in the second quarter.
Despite the cuts, Snap pointed to steady business performance. It expects first-quarter revenue of about $1.53 billion, up around 12% from a year earlier. Adjusted core profit is projected at $233 million, ahead of market expectations.
The company’s shares rose more than 10% in premarket trading, although the stock is still down about 31% this year.
Attention is also on Specs, Snap’s augmented reality glasses unit. The business has absorbed more than $3.5 billion in investment and continues to burn roughly $500 million a year. Snap plans to launch the product for consumers later this year, even as competition tightens.
Competitors, including Meta Platforms, already have a lead in the smart glasses market, leaving an interesting watch on the unit’s sustainability.
Snap now joins the list of tech companies cutting jobs in 2026, looking for ways to run leaner operations and improve returns.
