Business

Snap Cuts 16% of Staff in Sweeping Overhaul

By CM Chaney · April 15, 2026

Snap is cutting roughly 1,000 employees — about 16% of its full-time workforce — as the company pushes to restructure around its augmented reality glasses business and find a clearer path to profitability.

The company disclosed the layoffs in an SEC filing on April 15, announcing the cuts alongside the closure of more than 300 open roles. Snap expects the changes to reduce its annualized cost base by more than $500 million by the second half of 2026. U.S.-based employees leaving will receive four months of severance, healthcare coverage, and continued equity vesting.

The cuts are tied to a deliberate strategic shift. In January, Snap announced it was separating its AR glasses operation into a wholly owned subsidiary called Specs Inc., designed to give the division its own operational focus, capital flexibility, and potential for minority investment. According to reporting from Alex Heath’s newsletter Sources, the layoffs are structured to “more distinctly separate the legacy Snapchat business from Specs,” with cuts falling primarily on the core Snapchat side while the AR division continues hiring.

A separate $400 million integration deal with Perplexity AI reportedly collapsed over disputed terms, adding to the restructuring pressure.

Snap has been through multiple rounds of layoffs since 2022, when it cut 20% of staff and restructured its business lines. The company has faced persistent challenges turning its enormous user base — over 315 million average monthly ad-supported viewers globally, according to its most recent earnings — into sustainable profitability. Advertising revenue growth has been inconsistent, and the company has faced pressure from activist investors pushing for operational improvements.

The AR glasses bet is CEO Evan Spiegel’s biggest swing yet. The sixth generation of Specs is expected to launch in 2026 and is designed to be lighter and more consumer-friendly than previous iterations. Whether that product can reframe Snap’s growth story is the central unresolved question — and one that Monday’s layoffs are designed to create the financial runway to answer.

Pre-tax charges related to the restructuring are estimated at $95 million to $130 million, with the majority expected in the second quarter of 2026.