Snap Inc. is reportedly preparing to announce layoffs that could affect 15-20% of its workforce, which translates to over 1,000 employees from its current headcount of more than 5,000. The layoffs are speculated to be part of a restructuring effort that may be linked to advancements in artificial intelligence, although CEO Evan Spiegel has not confirmed this connection. Despite these cuts, Snap is simultaneously expanding its hiring efforts within its newly established Specs division, which focuses on augmented reality (AR) smart glasses. This division was spun off earlier this year and aims to compete with Meta Platforms in the AR space. Snap has invested over $3 billion in AR glasses development over the past 11 years. Additionally, the company has reported a significant boost in its direct revenue streams, achieving a $1 billion annualized run rate, primarily driven by its Snapchat+ subscription service. However, a proposed integration with Perplexity AI, which would have involved a $400 million investment, has been shelved due to disagreements over terms.