Confirming rumours that have been circlulating the internet since ChatGPT first came onto the scene – AI really is taking jobs from hard working people. Snapchat have just let 16% of their full time workforce go, replacing them with AI technology.
Snap Inc, the huge social media company, extremely popular with teens has just announced the lay off of 16% of their staff. This is the result of AI improvement and cost-cutting measures by those at the top.
It’s reported the company have experienced slow ad revenue growth, however, they have still seen a growth of 12% this year alone. During the first quarter of 2026, Snapchat announced a revenue growth of around $1.53 billion, and a profit of $233 million.
However, their stock has fallen by a huge 31% and this is likely due to slower user growth. With various countries clamping down on teenagers using social media, and teens being their biggest target audience, it’s no wonder Snap have taken a hit of some kind.
Snapchat trial marketing shift
The company tried shifting marketing efforts, which seems to have had mixed opinions. It doesn’t seem like they’ve been completely successful, although, you could argue, it’s early days for these changes and you can’t expect to see progress overnight.
Nontheless, the company bosses are clearly concerned and therefore decided they’d have to cut costs somewhere. With AI performance improving each day, it’s not surprising the company are choosing to lean into it and work with the trend.
The change though is monumental. Over 1,000 of Snap’s 5,261 employees are being effected. Not only that, but all the previously advertised roles have suddenly been pulled. They now aren’t looking to hire any time soon.
Over 300 jobs previously advertised have been removed. Snap estimate these cuts will help them save over $500 million each year. But, what does that mean for their employees? The ones actually affected.
Snapchat plan to pay out 4 months worth of severance, as well as healthcare coverage and equity vesting (ownership over an employees stock shares within the company). This is all for their US team. Any employees outside of the US will have their own procedures, thogh Snapchat promise to provide career transition support.
