Snap Inc. announced on Wednesday that it will lay off 1,000 employees, approximately 16% of its global workforce, as part of a strategic move to streamline operations and reduce costs. The layoffs are projected to cost the company between $95 million and $130 million in severance payments. This decision follows pressure from Irenic Capital Management, which holds a 2.5% stake in Snap and has urged the company to optimize its portfolio. CEO Evan Spiegel stated that the layoffs are part of a broader initiative to cut annual expenses by over $500 million by the second half of the year. The integration of artificial intelligence (AI) is a key factor in these changes, with AI now generating more than 65% of new code at Snap, allowing for smaller, more focused teams. This trend is not isolated to Snap; over 80 tech companies have collectively laid off about 71,440 employees this year, reflecting a significant shift in the workforce as automation becomes more prevalent. Other notable layoffs include 775 jobs at Nike and 1,000 jobs at Citigroup, highlighting the ongoing impact of AI on employment across various sectors.