Layoffs Hit Snapchat Owner Snap as 1,000 Jobs Slashed
The Hollywood Reporter • • business
Key Points:
- Snap Inc. is laying off about 1,000 employees, representing 16% of its workforce, as CEO Evan Spiegel calls it a “crucible moment” in the company’s push for sustained profitability.
- The layoffs are expected to reduce Snap’s annualized cost base by over $500 million by the end of the year, with restructuring costs estimated between $95 million and $130 million.
- Spiegel emphasized the role of artificial intelligence in accelerating product development and improving efficiency, noting that 65% of new code at Snap has been generated by AI.
- The company outlined three key growth priorities: focusing investments in monetizable markets, expanding Snapchat+ paid subscriptions, and creating higher-margin advertising opportunities.
- Snap projects Q1 revenue of $1.529 billion and adjusted EBITDA of $233 million, signaling a focus on financial discipline alongside innovation.
