Snap Inc., the social media company, is laying off 16% of its full-time workforce, impacting over 1000 employees. The move comes as a cost-cutting measure due to the slow ad revenue growth and pressure from investors. CEO Evan Spiegel stated that the move will help the company save $500 million a year.
Before the end of 2025, Snap had 5,261 employees; the workforce is expected to shrink significantly following the layoffs. According to a Bloomberg report, Spiegel, in a letter to employees, said, "While these changes are necessary to realise Snap’s long-term potential."
"We believe that rapid advancements in artificial intelligence enable our teams to reduce repetitive work, increase velocity, and better support our community, partners, and advertisers. We have already witnessed small squads leveraging AI tools to drive meaningful progress across several important initiatives," the memo reads.
In addition to workforce reduction, Snap is also eliminating over 300 job openings that were planned but not yet filled. "As a result of these changes, we expect to reduce our annualised cost base by more than $500 million by the second half of 2026, helping to establish a clearer path to net-income profitability," Spiegel added.
Reportedly, the company saw its revenue grow by 12% to about $1.53 billion in the first quarter, with profit of $233 million. Despite this growth, Snap’s stock has fallen nearly 31% this year, and it is facing slower user growth due to government restrictions or bans on social media use for teens. On the other hand, Snap’s attempts to revamp its advertising business have also received mixed success, compelling the company to take cost-cutting measures.
Snap Severance pay
The letter further stated that affected employees will receive four months of severance, healthcare coverage, and equity vesting for employees in the US. In addition, Snap will also provide career transition support. Employees outside of the US will follow local laws and procedures. It will also provide support to employees based on what is standard in that country.
"To our departing colleagues: thank you. Your hard work has helped shape Snap, and we are deeply grateful for your contributions," Spiegel said.
Impacted employees in the US will receive an email consisting of information about the next steps. Whereas for non-US locations, details about the next steps will be shared by leadership and HR, the letter stated.
For Unparalleled coverage of India's Businesses and Economy – Subscribe to Business Today Magazine
Published on: Apr 15, 2026 5:49 PM IST
此内容由惯性聚合(RSS阅读器)自动聚合整理，仅供阅读参考。 原文来自 — 版权归原作者所有。