Snap Cuts 1,000 Jobs After Activist Investor Calls Out Overhiring
Snap has announced it is laying off approximately 1,000 employees, representing around 16% of its total workforce. CEO Evan Spiegel confirmed the decision, stating the cuts would reduce annualized costs by more than $500 million. The move comes amid mounting pressure from shareholders and a stock price that has already fallen more than 30% in 2026.
Activist Investor Sparks the Shakeup
The layoffs follow a pointed March letter from Irenic Capital Management, an activist investor holding a 2.5% stake in Snap. The firm argued that the company had significantly over-hired and pointed to Meta and Block as models of companies that successfully trimmed their workforces to boost efficiency. Irenic also suggested Snap’s market capitalization was severely undervalued, estimating it should be closer to $35 billion compared to its current enterprise value of roughly $7.9 billion.
A Pattern of Cuts at Snap
This is not the first time Snap has resorted to large-scale layoffs. The social media company has now reduced its workforce three times since 2022, signaling ongoing struggles to achieve sustainable profitability. Despite the turbulence, Snap projects first-quarter revenue growth of 12%, reaching approximately $1.53 billion, with adjusted EBITDA of around $233 million.
The results suggest that cost-cutting measures may be producing tangible financial results, even as employees bear the burden of the company’s restructuring. Whether these layoffs will be enough to satisfy investors and stabilize Snap’s declining stock remains to be seen.
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