Snap Inc. said on Wednesday that it will lay off about 1,000 employees and close more than 300 unfilled positions as part of a cost-cutting effort.

In an email to staff that the company included in its official statement, chief executive Evan Spiegel said the measures are expected to lower Snap’s annualised cost base by more than $500m by the second half of 2026.

“After these changes, we expect to reduce our annualized cost base by more than $500 million by the second half of 2026, helping to establish a clearer path to net-income profitability,” Spiegel said.

Spiegel also said the company is increasing its use of artificial intelligence across its operations. He said the tools had already helped teams cut repetitive tasks, work more quickly and better support users, partners and advertisers.