Tape shows Snap shares attracted strong buying around workforce-reduction announcements, rallying 60% over 12 sessions and spiking 5–10% intraday on layoff and role-closure news, with buyers re-entering at each dip and sustaining upward flow.

Revenue grew 12% in Q1 to $1.53 billion and adj. EBITDA reached about $233 million despite $95–130 million in restructuring charges. Net loss for 2025 narrowed to $460 million on $5.9 billion in full-year revenue. Daily active users rose 5% to 474 million and monthly active users approached 946 million. The company is cutting roughly 16% of its workforce and closing 300 open roles to achieve over $500 million in annual cost savings, trim opex to $2.75 billion, drive gross margins above 60%, and reach net-income profitability while leveraging AI to generate 65% of new code.

Tech market restructuring and advertiser budget shifts amid geopolitical uncertainty have prompted Snap Inc. to eliminate roughly 1,000 positions (16% of its workforce) and cancel 300+ open roles, leveraging AI-driven efficiencies to cut over $500 million annually and reallocate resources to priority areas. Competitive pressure from TikTok and activist investor demands underscore the need for streamlined operations, while Snap’s separate Specs subsidiary secures a multi-year Qualcomm chip deal to power its upcoming AR glasses. Separately, U.S. SNAP benefit distribution leverages existing private retail infrastructure for scalable EBT delivery but faces thin margins and significant upfront investment for specialized store partnerships.

Sharply cutting 16% of its workforce under the banner of AI-driven efficiency to deliver over $500 million in annual savings has fueled a bullish cost-cutting and turnaround narrative, even as skepticism lingers over activist-driven motives, AI hype and Snap’s long-term underperformance.