Snap inc. is laying off 16 percent of its employees, about 1,000 people, as CEO Evan Spiegel says the Snapchat owner is facing a “crucible moment” as it tries to path find a path toward sustained profitability.
Spiegel announced the significant cuts in a memo to staff early Wednesday morning, adding that the staff reduction will reduce the company’s annualized cost base by more than $500 million by the end of this year, while incurring $95 million-$130 million in restructuring costs.
The CEO added that he believes adoption of artificial intelligence tools will allow the company to move faster and ship more products, with a new “jobs to be done” structure that aggressively leverages AI agents:
“While these changes are necessary to realize 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
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