Snap CEO Evan Spiegel announces massive layoffs after Perplexity deal falls apart
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Snap CEO Evan Spiegel announced a massive layoff of 1,000 employees, or 16% of its workforce, citing the importance of artificial intelligence and a failed $400 million deal with AI firm Perplexity. The company aims to reduce annual costs by $500 million by the end of the year.
Snap is laying off around 1,000 employees, or 16% of its workforce, as announced by CEO Evan Spiegel. The decision is linked to the company's focus on artificial intelligence and a failed deal with AI firm Perplexity. Spiegel stated that AI enables teams to reduce repetitive work and increase efficiency. The layoffs will help Snap reduce its annual costs by $500 million by the end of the year. The company had previously announced a $400 million partnership with Perplexity, which fell through. Activist investor Irenic Capital Management had called for Snap to make cuts and better utilize AI.
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