Oracle tells Snap: The $4 billion giant will lay off thousands of employees in the first four months of 2026 to promote artificial intelligence

The layoffs underscore the growing disconnect between soaring stock prices and employee stability, leaving thousands of highly skilled professionals returning to the job market in an increasingly competitive and automated environment.

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Oracle employees received news of the layoffs in an email from the company. “We have some difficult news to share regarding your position. After careful consideration of Oracle’s current business needs, we have decided to eliminate your position within the context of broader organizational changes. As a result, today is your last working day. We appreciate your dedication, hard work, and the impact you have made while you were with us. Once you sign the termination documents, you will be eligible to receive severance pay under the terms and conditions of your severance plan. You will receive a DocuSign email from Oracle email address with details about your severance package and termination date,” read part of the email.

According to Business Insider, Snap co-founder and CEO Evan Spiegel wrote in the memo: “While these changes are necessary to realize Snap’s long-term potential, we believe that rapid advances in artificial intelligence allow our teams to reduce repetitive work, increase speed, and better support our community, partners and advertisers.” He further added that the company will close more than 300 open positions.

“Snap faces a tough moment — caught between giants with vast resources and nimble startups that move quickly,” the company said.

“Today, we are announcing changes that will impact approximately 1,000 Snap team members, including 16% of full-time employees, in addition to closing more than 300 open positions. This is an extremely difficult decision, and I am deeply sorry to our colleagues who are leaving us. You have made important contributions to Snap, and we are committed to supporting you during this transition,” Spiegel’s memo reads.

“Today, we’re making one of the hardest decisions in our company’s history: We’re reducing our organization’s headcount by nearly half, from more than 10,000 people to less than 6,000. That means more than 4,000 people have been asked to leave or undergo counseling. I’ll be straight about what’s happening, why, and what it means for everyone,” the Twitter (now X) co-founder wrote.

Talking about the severance package for affected employees, he explained, “First, if you are one of the affected, you will receive 20 weeks of salary + 1 week per year of tenure, equity until the end of May, 6 months of healthcare, your company equipment and 5,000 US dollars to cover any assistance you need during this transition (if you are outside the United States, you will receive similar support, but the specifics will vary based on local circumstances) I want you to know that everyone will be notified today, whether you are asked to leave, receive counseling, or are asked to stay.”

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“Over the past few weeks, we have been making a number of changes to our organization that will result in us laying off approximately 10% of our workforce and closing approximately 6,000 employees on May 20,” Gale said in a memo. Normally we would like to finalize more details before communicating broadly, but now that this has been leaked, I want to share what I can. I know this is unwelcome news and confirming this news will put everyone on edge, but we feel this is the best path forward given the current circumstances.”

“We will provide those who are laid off with generous severance packages, which in the U.S. will include 16 weeks of base pay, plus two weeks of pay for each year worked. We will also cover 18 months of COBRA health insurance for U.S. employees and their families. Severance packages outside the U.S. will be similar but vary by country, as will local timelines and processes. We will also provide career services to support people finding another position and immigration support for those who need it. We will share more of these details on May 20 In a follow-up post before the date,” the memo continued.

Affected employees will receive termination emails through their work and personal email accounts.