Snap Inc. told employees in an internal memo that it planned to cut 16% of its workforce, or about 1,000 jobs, and linked the move to “rapid advancements in artificial intelligence.”
The company said the layoffs were part of a broader effort to move toward profitability. The memo from CEO Evan Spiegel also suggested artificial intelligence could take on some work as headcount shrinks.
The cuts came after pressure from Irenic Capital Management. The activist investor’s portfolio manager sent Spiegel a letter last month urging the company to lower costs and reduce staff while criticizing Snap’s strategy.
The announcement added to a wider run of tech layoffs over the past year. According to the provided material, several companies had also pointed to AI as a reason for job cuts.