Overview
- Snap, which announced the move Wednesday, will lay off about 1,000 employees and close more than 300 open roles for a total reduction of roughly 16% of full-time staff.
- Executives cite rapid gains in artificial intelligence, saying AI now generates more than 65% of new code and automated agents handle high volumes of support and code reviews.
- The plan targets more than $500 million in annualized savings by the second half of 2026 and carries expected one-time charges of $95 million to $130 million tied largely to severance.
- Shares rose in early trading after the announcement, and the overhaul followed weeks of pressure from activist investor Irenic Capital to cut costs and reassess the AR glasses unit.
- U.S. employees who lose their jobs will receive four months of pay with continued healthcare and equity vesting, and North America staff were told to work from home during notifications.