Snap plans layoffs of about 1,000 as it relies more on AI

In short: Snap, the company behind Snapchat, said it is laying off about 1,000 employees as it cuts costs and leans more on AI and automation.

What happened

Snap Inc., the parent company of Snapchat, announced layoffs affecting about 1,000 employees. The company said the cuts are part of broader efforts to reduce costs.

Snap is also increasing its reliance on artificial intelligence and automation. Artificial intelligence, often called AI, is software that can do some tasks people normally do, like sorting information or answering questions. Automation is similar, it is when work is handled by systems that run with less human effort (like using a self-checkout lane instead of a cashier).

The report did not include details on which jobs are being cut, or which AI tools Snap is using and when they will be rolled out. Because of that, it is hard to confirm how much of the work is actually shifting from people to software right now.

Why it matters

Snap is not alone. A survey by the outplacement firm Challenger, Gray & Christmas said AI was linked to about 7% of planned layoffs announced in the US in January. The story also points to job cuts at other large companies, including Meta, Nike, Citigroup, and Morgan Stanley, as businesses look for ways to do more work with fewer employees.

For regular workers, this is a sign that more companies may try to replace parts of office jobs with software tools. For everyone else, it can affect how quickly apps and services change, since companies may focus more on saving money than adding staff.

Source: NYTimes