Overview
- Snap, which announced the cuts Wednesday, will eliminate about 1,000 positions and close more than 300 open roles as it restructures operations.
- Management expects more than $500 million in annualized savings by the second half of 2026 and $95 million to $130 million in related charges, mostly recorded in the second quarter.
- CEO Evan Spiegel said rapid advances in artificial intelligence let smaller teams automate repetitive work, with the company reporting that AI now generates more than 65% of new code.
- The move follows pressure from activist investor Irenic Capital, which urged changes to Snap’s portfolio and singled out its Specs AR glasses unit that it says has absorbed over $3.5 billion and burns about $500 million a year, even as Snap plans a consumer launch of the glasses this year.
- Shares rose in early trading and Snap guided to roughly 12% first‑quarter revenue growth to about $1.53 billion with about $233 million in adjusted core profit, while affected U.S. staff are set to receive four months of pay, health coverage, equity vesting, and career support.