Snap Inc., the company that owns the social media platform Snapchat, is laying off about 16 percent of its full-time workforce.
The move will impact about 1,000 employees, CEO Evan Spiegel announced Wednesday. The company is also closing about 300 open roles.
“This is an incredibly difficult decision, and I am deeply sorry to the colleagues who will be leaving us. You have made important contributions to Snap, and we are committed to supporting you through this transition,” Spiegel said in a message to staff.
Spiegel said the company had to make “tough choices to prioritize the investments we believe are most likely to create long-term value.”
“As a result of these changes, we expect to reduce our annualized cost base by more than $500 million by the second half of 2026, helping to establish a clearer path to net-income profitability,” he said.
Snap has struggled with profitability and is facing mounting pressure from investors, according to the Wall Street Journal.
Impacted employees who are based in the U.S. will receive “four months of severance, healthcare coverage, and equity vesting, along with career transition support,” according to Spiegel’s statement.
For those outside the country, the company will “follow local processes and seek to provide comparable support aligned with local norms.”
“Today we announced organizational changes to better align our resources behind our highest priorities as we continue our pivot toward profitable growth,” a Snap spokesperson told The Independent. “These decisions are incredibly difficult, and we are committed to supporting our colleagues who are leaving Snap through this transition.”
Snap also underwent a round of layoffs in 2024, cutting more than 500 jobs. Two years prior, the company eliminated about 20 percent of its workforce.
Snapchat, a popular social media platform known for its disappearing photos and videos, has more than 946 million monthly active users, its parent company said in February.
The platform also offers a paid subscription service, which surpassed 25 million members earlier this year.
