Snap has announced plans to lay off around 1,000 employees, including 16% of its full-time staff, as the company shifts towards leaner teams and ramps up its adoption of artificial intelligence to streamline operations.
The move comes weeks after activist investor Irenic Capital Management pushed the Snapchat parent to optimize its portfolio and improve performance.
Advances in AI are helping Snap operate with smaller teams, with AI generating more than 65% of new code and assigning critical work to focused teams and AI agents.
The company expects to cut more than $500 million in annualized expenses by the second half of the year, driven by the recent layoffs and broader efforts to reduce operating costs and stock-based compensation.
Snap expects first-quarter revenue to rise about 12% to roughly $1.53 billion, largely in line with Wall Street expectations.
