The mechanical response of snow to mixed‐mode shear and normal loading is the key ingredient for snow avalanche modeling and strongly depends on microstructural characteristics. A discrete element numerical model was developed, which enables the simulation of large‐strain response of snow samples directly described by their full microstructure obtained through X‐ray microtomography. The model offers new insights into the failure mechanism as well as postfailure response of snow in mixed‐mode loading. Three distinct failure modes are identified, depending on the value of applied normal stress. Above a certain threshold normal stress, the failure is characterized by a structural collapse that decomposes the snow sample into a set of cohesionless grains. It is shown that the collapse is a dynamic process, which, once initiated, develops independently of shearing. This behavior was consistently observed for different snow types, including faceted crystals typically composing weak layers.