Snap, the parent company of Snapchat, is cutting 1,000 jobs, representing 16% of its workforce, in an effort to increase net profitability. The company is also closing 300 open roles. CEO Evan Spiegel credits "rapid advancements in artificial intelligence" for helping smaller groups work better. The job cuts are expected to reduce annualized costs by over $500 million by the second half of 2026. As a result, Snap expects to incur pre-tax charges of $95 million to $130 million, primarily consisting of severance and related costs, contract termination costs, and other impairment charges. U.S.-based team members will receive severance, healthcare coverage, and equity vesting, along with career transition support outside the US.