Snap Inc. is preparing to cut 15% to 20% of its total workforce.
The restructuring aims to separate the core Snapchat business from the Specs augmented reality division. While some departments face 50% staff reductions, the Specs subsidiary plans to expand its team.
Snap also terminated a $400 million integration deal with artificial intelligence firm Perplexity.
Company shares rose 2.5% in pre-market trading on April 15. Investors reacted positively to the potential cost-saving measures.