**Snap Inc. Layoffs and Financial Struggles**
Snap Inc. is laying off approximately 16% of its workforce in a bid to reduce expenses and move toward profitability. This decision, announced recently, is part of broader cost-cutting measures as the company faces intense competition from larger players like Meta Platforms. Snap’s annualized cost base is expected to decrease by over $500 million by the second half of this year.
Despite a slight revenue increase of 10% year-over-year to $1.72 billion in Q4 2025, Snap reported a net loss of $460 million for the entire year, compounded by heavy reliance on stock-based compensation, which amounted to $1 billion. Over the last five years, Snap’s stock has plummeted nearly 90%, raising doubts about its turnaround prospects amid fierce market competition.
