Snap Inc. announced on Wednesday plans to lay off approximately 1,000 employees, which constitutes about 16% of its total workforce. This decision is part of a broader strategy to integrate artificial intelligence (AI) into its operations, as AI now accounts for over 65% of new code generated within the company. The layoffs come after pressure from Irenic Capital Management, an activist investor holding around 2.5% of Snap's shares, urging the company to optimize its portfolio. Snap's CEO, Evan Spiegel, indicated that the restructuring is expected to result in annualized savings of over $500 million by the second half of the year. Additionally, the company anticipates incurring between $95 million to $130 million in charges related to the layoffs, primarily in the second quarter. Despite the challenging market conditions, Snap's stock saw an increase of nearly 8% following the announcement, although it remains down 25.7% year-to-date.