Snap Lays Off 16% of Employees: Will They Be Replaced by AI?

Snap is also cutting its workforce: the company has announced the layoff of 16% of its staff, totaling about 1,000 positions. At the core of this decision, as highlighted by CEO Evan Spiegel, is the need to increase the efficiency of business operations, aiming for even more significant growth. Overall, the company should save over $500 million annually due to the layoffs. These resources could be allocated to a new project dedicated to the augmented reality sector.

Is it All the Fault of AI?
An important role in this new wave of layoffs is linked to the role of artificial intelligence, which is playing a significant part in simplifying operations, enabling Snap to reduce its team and streamline development activities, with over 65% of the code being generated by AI, capable of performing various tasks even with agent-like functionalities. It is worth noting that Snap has been accused of training AI with material obtained without authorization.

Evan Spiegel commented: "Last fall, I described Snap as a company facing a critical moment that required a new, faster, and more efficient way of working, oriented towards profitable growth. We believe that rapid advancements in artificial intelligence allow our teams to reduce repetitive work, increase speed, and better support our community, our partners, and our advertisers."

The announcement has pushed Snap Inc. stocks up, which experienced a rapid growth, returning to levels seen in early February 2026, after the drastic drop recorded during March 2026 (which may have played a crucial role in the decision to announce this new wave of layoffs).