Snap Lays Off 1,000 Employees, CEO Blames AI
Jakarta, VIVA – A wave of layoffs has once again struck the technology industry. This time, Snap Inc., the parent company of Snapchat, has announced a major cut to its workforce.
Around 1,000 employees, or the equivalent of 16 percent of the total staff, will be affected by this decision. This step adds to the long list of global technology companies implementing efficiencies by linking them to developments in artificial intelligence (AI).
In addition to technological factors, pressure from investors has also become one of the main triggers for this restructuring. In an internal memo to employees, Snap’s CEO, Evan Spiegel, openly stated that progress in AI was an important reason behind the decision.
“Although these changes are necessary to realise Snap’s long-term potential, we believe that rapid advances in artificial intelligence enable our team to reduce repetitive work, increase the speed of operations, and provide better support for our community, partners, and advertisers,” wrote Spiegel, as quoted from The Guardian on Friday, 17 April 2026.
This layoff decision does not stand alone. Previously, activist investor Irenic Capital Management had urged Snap to cut operational costs and staff numbers.
In its letter to Spiegel, the investment management firm also criticised the company’s strategy, which it deemed suboptimal. This efficiency measure is expected to drive the company towards profitability. Moreover, Snap’s share price had been under significant pressure throughout the year.
However, interestingly, after the layoff news was announced, Snap’s shares rose around 6 percent in early trading. This increase occurred after the company’s shares had plummeted more than 30 percent since the beginning of the year.
The phenomenon of linking layoffs to AI has now become a trend in the technology industry. Several tech giants such as Microsoft, Amazon, and Oracle have also carried out large-scale staff cuts while adopting AI technology.
Even Block, the company owned by Jack Dorsey, has joined this wave. They argued that AI allows the company to operate more efficiently with a smaller workforce.
Nevertheless, not all parties agree with this narrative. Some experts and workers believe that the benefits of AI in enhancing productivity are not yet fully clear.