Snap Inc., the American technology company behind the photo- and video-sharing app Snapchat, announced on Wednesday that it is cutting approximately 1,000 employees — around 16% of its full-time workforce — while simultaneously closing more than 300 unfilled roles. CEO Evan Spiegel shared the news in an internal memo to staff, framing the sweeping reduction as a move toward profitability and a leaner, AI-driven way of working.

In his memo, Spiegel argued that advances in artificial intelligence are enabling teams to handle repetitive tasks more efficiently, pointing to early results in areas such as the company's premium subscription service Snapchat+, its advertising platform, and infrastructure improvements in Snap Lite. "We believe that rapid advancements in artificial intelligence enable our teams to reduce repetitive work, increase velocity, and better support our community, partners, and advertisers," he wrote. The cuts follow pressure from Irenic Capital Management, an activist investor with roughly a 2.5% economic stake in Snap, whose portfolio manager had written to Spiegel urging him to reduce costs and headcount and criticising the company's existing strategy.

Snap's announcement places it among a growing list of tech firms — including Microsoft, Amazon, Oracle, and Block — that have announced mass layoffs while simultaneously embracing AI tools, arguing the technology allows businesses to operate effectively with fewer people. The company, founded in 2011 and employing around 5,200 people as of last December, is due to report its quarterly results on 6 May. Its stock rose roughly 6% in early trading following the news, partially recovering after a decline of more than 30% in the year to date.

The layoffs have drawn scepticism from some quarters. Critics, including former workers and even some pro-AI voices in the industry, have accused tech firms of "AI-washing" — using AI as a convenient public justification for cuts that are primarily driven by investor pressure or over-hiring during the post-pandemic boom. Venture capitalist Marc Andreessen has himself suggested that AI is sometimes used as a pretext by firms that simply overstaffed in earlier years.

The broader debate over AI's impact on employment is intensifying. Leading AI companies including OpenAI and Anthropic have reportedly grown concerned about their public image on labour issues and have begun engaging politically on the subject. OpenAI recently published policy proposals suggesting measures such as a four-day workweek and a public wealth fund to redistribute AI-generated profits to citizens — an indication that the industry is aware of growing public unease over technology-driven job losses.