GoKawiilEvan Spiegel, CEO of Snap Inc., speaks onstage during the Snap Partner Summit 2023 at Barker Hangar on April 19, 2023 in Santa Monica, California.
Shares of Snap climbed 13% Tuesday after shareholder Irenic Capital Management sent a letter to CEO Evan Spiegel outlining changes that could increase the stock's value by almost 600%.
"Snap should not continue doing what it has been doing. It's not working," Irenic wrote in its letter, published on savesnapnow.com alongside a presentation of recommendations.
The recommendations, titled "6 Steps to 7X," aim to increase Snap's stock price from $3.93 to over $26 per share.
Irenic's recommendations include shutting down or spinning off Specs, the company's augmented reality glasses unit. The unit was announced to be a wholly owned subsidiary of Snap in January.
Referencing previous layoffs from Uber , Meta and Block , Irenic said Snap should use artificial intelligence more heavily to cut 1,000 employees, or 21% of its workforce.
"AI can and should replace many existing roles," Irenic wrote under 'rationalize costs,' the company's second recommendation.