Snap slashes 1,000 jobs in AI efficiency push

Social media company Snap axed around 1,000 jobs, equivalent to 16 per cent of its full-time workforce, as part of a restructuring drive to streamline operations through AI and quicken its path to profitability. In an update to investors, the Snapchat parent said the move would include the closure of more than 300 open roles as it seeks to utilise growing efficiencies from AI and “further streamline our operations and reallocate resources toward our highest-priority initiatives”. Snap expects the changes to deliver more than $500 million in annualised cost savings by the second half of 2026, helping pave “a clearer path to net-income profitability”. In a letter to employees, Snap CEO Evan Spiegel explained “rapid advancements in AI enable our teams to reduce repetitive work, increase velocity, and better support our community, partners, and advertisers”, adding the company has already seen AI tools powering meaningful progress. He explained that, following a review, the company had made “tough choices to prioritise the investments we believe are most likely to create long-term value”. Speigel highlighted the company is pivoting to “a new way of working that is faster and more efficient, while pivoting towards profitable growth”, creating “a faster, stronger, and more durable Snap for the long term”. Despite the workforce reduction, Snap updated its first quarter financial outlook with an estimated revenue of around $1.5 billion, up 12 per cent year-on-year, and an adjusted EBITDA of approximately $233 million. The company also warned it will incur charges of between $95 million and $130 million in the second quarter, tied to severance, contract termination and related restructuring costs. The post Snap slashes 1,000 jobs in AI efficiency push appeared first on Mobile World Live .