Evan Spiegel Defends 1,000 Layoffs, Says AI Now Powers 65% of Code
Snap is cutting about 1,000 jobs, and the explanation is raising bigger questions than the layoffs themselves.
The company says artificial intelligence is a key reason.
According to Reuters and The Verge, CEO Evan Spiegel told employees that AI now allows teams to work faster and handle repetitive tasks, reducing the need for large headcounts. The cuts affect roughly 16% of staff, with another 300 open roles eliminated.
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But the timing adds tension.
The layoffs also follow pressure from an activist investor and come as Snap tries to cut over $500 million in costs and reach profitability. At the same time, AI is reportedly generating about 65% of the company’s new code.
That combination is fueling skepticism.
Some analysts and critics argue companies may be leaning on AI as a justification for broader cost-cutting trends already happening across tech, where firms like Amazon and Meta have also reduced staffing.
The bigger question now is how much AI is actually replacing jobs—and how fast.
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