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Snap Blames AI for 1,000 Layoffs, Meta Bets

Robert HattalaApril 27, 2026
p>Two things happened this week that tell you everything about where we are with AI right now. Snap fired a thousand people and blamed AI. Meta announced it's spending up to $135 billion on AI this year. Those two facts belong in the same sentence.

Snap Is Cutting Headcount and AI Is Writing the Code

Snap CEO Evan Spiegel announced about 1,000 layoffs and closed over 300 open roles. The reason he gave? Rapid advances in AI. He also mentioned that AI is now generating more than 65% of Snap's new code.

That's the real number to sit with. Two thirds of the code at a billion-dollar social platform is being written by AI. The engineers who remain are reviewing it, steering it, and shipping it. A lot of the ones who used to write it are now looking for jobs.

This isn't a one-off. It's a preview. Every company with a large engineering org is running the same math right now. The answer keeps coming out the same way.

Meta Is Spending $130 Billion and That's Not a Typo

Meta announced AI capital expenditures of $115 to $135 billion for 2026. Last year's number was around half that. They nearly doubled it.

That kind of spending is what it looks like when a company decides AI is the only game in town and they're going all in. Mark Zuckerberg has been loud about this for a while and the budget is backing him up.

The tricky part is that nobody outside Meta knows if this spending is going to pay off or if it's going to be the most expensive lesson in tech history. But when a company has that much cash and that much motivation to win, you don't bet against them showing up.

OpenAI Quietly Shipped Something Worth Paying Attention To

OpenAI rolled out workspace agents in ChatGPT for Business, Enterprise, and education users. Teams can now build agents that run across tools like Slack and Gmail. You define what the agent does, share it with your team, and it goes to work.

This one didn't get the headlines of the Snap layoffs but it matters more for your day-to-day. The question shifts from "can I use AI at work" to "how do I set up an agent that handles this for my whole team." That's a different conversation, and it's the one worth having right now.

The companies that figure this out in the next six months are going to look a lot more efficient than the ones that are still treating AI like a personal productivity toy.

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