Snap Inc Cites AI Advancements as Reason for Laying Off 1,000 Workers

Snap Inc, the parent company of Snapchat, has announced plans to lay off 1,000 workers, or 16% of its employees, citing rapid advancements in artificial intelligence as the reason. The social media company informed staff of the decision in an internal memo on Wednesday.

The layoffs are part of a wave of tech industry job cuts in the past year, with many firms, including Microsoft, Amazon, and Oracle, blaming AI for the reductions. Snap Inc's CEO, Evan Spiegel, claimed that the layoffs would help the company move towards profitability and suggested that AI could fill the gap left by human labor.

In his memo to staff, Spiegel wrote: “While these changes are necessary to realize Snap’s long-term potential, we believe that rapid advancements in artificial intelligence enable our teams to reduce repetitive work, increase velocity, and better support our community, partners, and advertisers.”

The company, which employed around 5,200 people as of December last year, had also posted 300 open roles that will no longer be filled. Snap's stock rose around 6% in early trading following the news of the layoffs.

The move has sparked concerns about the impact of AI on the labor market, with some experts and workers accusing firms of “AI-washing” layoffs to posture for investors and the market. However, top AI firms such as OpenAI and Anthropic have launched a charm offensive to address AI's potentially harmful effects on the labor market.