Snap slashes workforce for AI

The layoffs follow a period of financial pressure and an underperforming stock price that has drawn scrutiny from activist investors.

Spiegel informed staff that smaller, more efficient teams using AI tools would drive future progress, marking a significant shift in the company's organizational strategy.

Snap expects to incur between $95 million and $130 million in severance and related costs as part of the restructuring.

This move reflects a broader trend in the tech industry where firms are prioritizing AI investment over traditional headcount to manage rising costs.