Snap Inc. (NYSE:SNAP) said it will cut about 1,000 jobs, or roughly 16% of its workforce, as part of a broader restructuring aimed at reducing costs and improving profitability amid slowing growth and rising competitive pressure.
In a note to employees, CEO Evan Spiegel said the social media firm is also closing more than 300 open roles and expects over $500 million in annualized cost savings by the second half of 2026. Affected U.S. employees will receive four months of severance, healthcare coverage, equity vesting, and transition support.
“While these changes are necessary to realize Snap's long-term potential, we believe that rapid advancements in artificial intelligence enable our teams to reduce repetitive work, increase velocity, and better support our community, partners, and advertisers,” Spiegel said.
Industry Cost Cuts Spread
The move comes amid a broader wave of cost-cutting across media and tech companies, with firms including Walt Disney Company (NYSE:DIS) also announcing job reductions as they streamline operations.
Snap, which owns messaging app Snapchat, had about 5,261 full-time employees as of December 2025, with about 54% working in engineering roles.
The company said it expects $95 million to $130 million in charges, mostly for severance and related costs — the majority of which would be incurred in the second quarter, according to a regulatory filing.
Price Action: In pre-market trading on Wednesday, SNAP stock rose over 11% to $6.23, after having lost about 31% so far this year.
Disclaimer: This content was produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Shutterstock
Login to comment