Snap Inc. announced it will lay off around 1,000 employees, equating to 16% of its full-time staff, as part of a strategic shift towards adopting artificial intelligence (AI) to enhance operational efficiency. This decision follows pressure from Irenic Capital Management, which holds a 2.5% stake in the company, urging Snap to optimize its portfolio and reduce costs. The layoffs will also lead to the closure of over 300 open roles. Snap indicated that AI is now responsible for generating more than 65% of new code, allowing the firm to operate with smaller teams. CEO Evan Spiegel stated that these changes are expected to result in over $500 million in annualized savings by the second half of the year. Following the announcement, Snap's shares rose 5.8%, although the stock has fallen approximately 31% this year. The company continues to invest in its augmented reality glasses unit, Specs, despite calls to cut back on cash-burning ventures.