AI and workforce reduction - Meer | English edition
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A pattern is emerging across industries that is difficult to reconcile at first glance: companies are reducing headcount while increasing investment in AI systems at the same time. A recent example makes this visible. Snap cut roughly 1,000 roles, about 16% of its workforce, while shifting more aggressively toward AI-enabled operations. Internal figures referenced in company reporting show that AI now generates over 65% of its new code and is already handling large volumes of support queries, allowing smaller teams to deliver comparable output. What Snap's leadership emphasised in its internal memo was not just cost reduction but the ability of smaller teams to operate more efficiently as AI takes over repetitive work. This pattern is not confined to a single firm. A broader wave of corporate announcements shows organisations cutting roles while expanding spending on AI infrastructure such as compute capacity, data systems, and internal automation tools. Reporting across markets indicates that companies are increasingly linking workforce reductions to efficiency gains enabled by AI, even when the connection is framed cautiously or indirectly. So the direct answer is clear: AI is contributing to layoffs. But stopping there misses what is actually changing. What these signals point to is a shift in cost structure. Labour, traditionally treated as ongoing operating expense, is...
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