Snap cuts 1,000 jobs and pivots toward AI efficiency
Snap is laying off 1,000 employees to reduce costs by $500 million. The move follows pressure from activist investors to optimize performance using AI tools.
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SNAP INC - A announced on Wednesday that it will lay off approximately 1,000 employees, representing 16% of its full-time workforce, as the social media company looks to reduce costs and leverage artificial intelligence to boost productivity. The move, which also includes the closure of more than 300 open roles, comes after activist investor Irenic Capital Management pushed the Snapchat parent to optimize its portfolio and improve performance. The activist investor currently holds an economic interest of about 2.5% in the company.
