Investing.com -- Snap Inc (NYSE: SNAP) CEO Evan Spiegel is facing criticism after partying at Coachella just days before announcing that the company would eliminate approximately 1,000 employees, or 16% of its full-time workforce.

In an Instagram post from Spiegel’s model wife, Miranda Kerr, three days ago, the executive is seen enjoying the festival as the major cuts were likely in the works. While the date of the image was not mentioned, Coachella’s opening weekend was April 10-12. The layoff announcement came on April 15.

The timing of Spiegel’s appearance at the music festival has drawn scrutiny from employees and observers.

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In a post on the website Blind, user INVjY6t0, a purported employee of Snap that was let go in the purge, said: "I guess he had to blow off some steam before announcing the big news. I just got the layoff email earlier today and I think a lot of my teammates are gone too. I worked at Snap for a couple of years and it’s good to know that at least the CEO’s mental health and WLB is being taken care of. So glad I’m out of here. Worst way to do layoffs in my honest opinion...Thanks for the FU Snap :)"

In announcing the cuts on Wednesday, Spiegel cited artificial intelligence advancements as enabling the workforce reduction. "Rapid advancements in artificial intelligence enable our teams to reduce repetitive work, increase velocity, and better support our community, partners, and advertisers," Spiegel said in a statement. The CEO revealed that AI now generates over 65% of new code at Snap.

The restructuring aims to reduce annualized expenses by more than $500 million by the second half of 2026, though the company expects $95 million to $130 million in layoff-related charges, primarily in the second quarter. U.S.-based employees will receive four months of severance, healthcare coverage, equity vesting, and career transition support.

The layoffs follow pressure from activist investor Irenic Capital Management, which holds a 2.5% economic interest and has pushed Snap to optimize its portfolio.

Shares of Snap ralliled 8% Wednesday on the layoff news but remain down 25% year-to-date.