Following the mass layoffs at Oracle last month, Snap Inc., the parent company of Snapchat, has joined the list of employers downsizing in 2026. Snap Inc. has confirmed significant job cuts in the coming months, laying off up to 16 per cent of global workforce. As has been the case with most layoffs lately, Snap Inc.’s decision comes primarily with the intention of cost-cutting amid slowing ad revenue growth and pressure from investors.
The company, which had about 5,261 full-time employees as of December 2025, is said to let go of 1,000 employees, which amounts 16% of its workforce, as reported by Reuters. The company has also reportedly confirmed closing over 300 open roles, further adding that it expected to reduce its annual expenses by over $500 million by the second half of this year.
The layoffs are expected to primarily impact teams outside its core AR (augmented reality) development efforts, although Snap is yet to confirm anything on this front. The move comes weeks after activist investor Irenic Capital Management urged Snap to optimise its portfolio, cut costs through layoffs, and make better use of AI to improve performance.
Snap faces pressure from advertisers, competition
The announcement comes at a time when smaller social media platforms like Snap and Pinterest are facing an increasing risk of budget cuts from large advertisers. Report states that advertisers are shifting spending toward bigger players such as Meta Platforms and Google due to their larger user bases and more stable ad ecosystems. The recent geopolitical uncertainty has further contributed to cautious spending by marketers.
Hence, Snap has been under pressure to improve profitability in its core advertising business amid stiff competition and slower growth. The company joins a growing list of tech firms announcing job reductions in 2026 as part of efficiency drives primarily driven by AI adoption and cost optimisation. Other notable names in this list include Amazon, Meta, Oracle, Pinterest, Panasonic, Livspace, Salesforce and others.
Focus on AR remains intact
Despite the layoffs, Snap continues to invest heavily in its augmented reality initiatives. Its Specs divisioin, focused on AR smart glasses and the Lens Studio developer platform, is reportedly protected from the cuts and continues to hire in key areas.
Snap has not yet released an official statement detailing which specific teams will be impacted or the timeline for the reductions. The company is expected to provide more details in its upcoming quarterly earnings report.
Previously, CEO Evan Spiegel has described the company as being in a “crucible moment,” stressing the need to build durable, multi-billion-dollar revenue streams outside traditional advertising. Snap has poured more than $3 billion into AR development over the past 11 years and views smart glasses as a key area for future growth to compete with Meta’s wearables.