Snap Inc. (NYSE:SNAP) shares rose 6% Tuesday after Bloomberg reported that activist investor Irenic Capital Management has built a position in the social media company and is pushing for operational changes.

Irenic sent a letter to Snap Chief Executive Officer Evan Spiegel outlining its views, according to people familiar with the matter. The investor’s economic interest in Snap’s Class A shares is around 2.5%, the people said.

The activist investor recommends spinning off or shutting down Snap’s smart glasses business Specs, which has received $3.5 billion in funding. Irenic argued the unit should “be funded on its own” by now. Snap announced in January it would create a standalone subsidiary for Specs.

Irenic also proposes that Snap rationalize its cost structure by cutting its workforce and changing employee compensation. The hedge fund suggests implementing a stock buyback program and focusing on adopting artificial intelligence to improve ad monetization.

Michael Lynton, chairperson of Snap’s board, said in a statement that “Snap welcomes input from all shareholders and regularly engages with investors on strategy, capital allocation, and governance.”