Snap’s shares rose roughly 8% on news of the layoffs|Alpha Photo|CC BY-NC 2.0

Snapchat’s parent company, Snap, is cutting 1,000 jobs, roughly 16% of its full-time employees, in a move to generate over $500 million in annualized cost savings this year.

The company is also closing 300 open roles as part of the restructuring.

CEO Evan Spiegel characterized the move as a “crucible moment,” citing that AI has enabled a faster and more efficient workforce.

It is the third major round of layoffs for Snap in the past three years. Snapchat struggles with a decline in global daily active users, which fell by 3 million to 474 million in the final quarter of 2025.

While total revenue grew 10% to $1.72 billion in Q4, core advertising revenue saw a modest 5% increase.

Following news of the layoffs, Snap shares rose roughly 8%, despite being down about 31% year to date.