Snap Inc. stock rises on 1,000 job cuts, $500 million savings
Snapchat's parent company, Snap Inc., just saw its stock price climb after revealing plans to lay off about 1,000 employees, roughly 16% of its team, and cut more than 300 open job listings.
The move is all about making the company leaner and more competitive in the social media game.
Snap expects these changes to save it more than $500 million by the second half of 2026.
Snap restructuring will cost $95 million-$130 million
The restructuring will cost Snap between $95 million and $130 million, including severance payments, contract terminations, and other charges, with most costs expected in the second quarter.
On the tech side, Snap is leaning heavily into AI: more than 65% of its new code now uses it, and its AI tools handle more than 1 million queries every month.
Financially, things are looking steady: first-quarter revenue is set to hit around $1.5 billion, matching Wall Street expectations and beating analysts' expectations for adjusted core profit.