The parent company of Snapchat is eliminating 95 positions across its Washington state locations as part of a company-wide workforce reduction affecting approximately 1,000 employees, representing 16% of its total staff.
According to a WARN Act filing submitted to Washington’s Employment Security Department on Wednesday, the job cuts will impact workers at the company’s Bellevue, Seattle, and Vancouver, Washington facilities. The reductions will be implemented in phases starting April 16 and concluding by June 16.
Documentation filed with the state reveals that the majority of eliminated positions are technology-focused, including software engineers, machine learning specialists, data analysts, product managers, and recruiting personnel. Among those losing their jobs are senior-level employees such as a director overseeing the company’s AI platform engineering division and a distinguished software engineer.
These workforce reductions come approximately two weeks following Snap’s acquisition of certain assets from Rec Room, a Seattle-based social gaming platform that recently announced its closure after being unable to achieve profitability.
Former Rec Room staff members who transitioned to Snap were expected to join Specs Inc., the company’s hardware division specializing in augmented reality eyewear. Whether any of these recently onboarded employees are included in the 95 Washington state job cuts remains uncertain.
The company, headquartered in Santa Monica, California, declined to provide additional commentary beyond its official regulatory submissions. As of December, Snap employed 5,261 full-time workers.
Beyond the planned job eliminations, Chief Executive Officer Evan Spiegel informed staff in a Wednesday memorandum that the company is also canceling over 300 vacant positions it had intended to fill. The organization aims to reduce operational expenses by more than $500 million during the year’s second half.
Spiegel’s memo positioned the workforce reduction partially as an adaptation to artificial intelligence capabilities, explaining that technological advancements enable smaller teams to accomplish tasks that previously required larger workforces.
In materials prepared for investors, Snap characterized the current situation as a “crucible moment,” noting the company faces pressure from “giants with enormous resources and nimble startups moving fast.” The company highlighted that artificial intelligence now generates over 65% of its new code, while AI-powered agents handle more than 1 million customer support inquiries monthly.
The restructuring follows demands from activist investor Irenic Capital Management, which holds approximately 2.5% of the company’s shares and urged Snap last month to reduce costs and refine its business strategy. Irenic also questioned the value of Snap’s $3.5 billion investment in its Specs eyewear product line, which has not yet produced substantial returns.
The company’s stock price rose nearly 8% during Wednesday trading following the announcement, despite remaining down roughly 25% year-to-date. Snap anticipates incurring restructuring expenses ranging from $95 million to $130 million, primarily related to employee severance packages.
This marks Snap’s fourth significant workforce reduction in recent years. The company previously cut 10% of its workforce in 2024, conducted a smaller reduction in late 2023, and eliminated 20% of positions in 2022.
The latest round of cuts reflects ongoing challenges facing the social media company as it attempts to balance innovation investments with profitability demands from shareholders while navigating an
increasingly competitive landscape dominated by both established tech giants and emerging competitors.