Snap Inc has announced plans to cut around 1,000 roles – roughly 16% of its global workforce – as the social media company ramps up its use of AI.

In a memo to staff, Snap CEO Evan Spiegel (pictured below) said the decision was “incredibly difficult” but necessary to save more than US$500 million (A$770 million) by the second half of 2026 and move the company towards sustained profitability. The cuts also include the closure of more than 300 open roles.

Spiegel said advances in AI are enabling Snap to streamline operations and reduce reliance on human labour, particularly for repetitive tasks. He pointed to internal teams already using AI tools to improve Snapchat+, advertising performance and infrastructure efficiency.

Employees affected by the layoffs were notified via email, with North American staff directed to work from home during the transition. Snap is offering four months’ severance, along with healthcare and related benefits.

The move comes amid broader pressure on Snap from declining share performance and calls from activist investor Irenic Capital Management to reduce costs and headcount.

Snap joins a growing list of global tech firms, including Microsoft, Amazon and Pinterest, that have announced job cuts tied to AI-driven restructuring over the past year.

It has been questioned by some in the tech industry whether companies are overstating AI’s immediate impact, suggesting some layoffs may reflect overhiring during the pandemic-era tech boom.

Despite this, Snap’s shares rose around 6% following the announcement, signalling investor support for its cost-cutting strategy.