The corresponding verb to Schnibbler is schnibbeln, which is much more common.
It means to cut (literally to snip), usually into small pieces, and is mainly used in a family environment with children. The first things that come to mind are to cut vegetables for cooking and to cut paper for handicraft work with children (auseinanderschnibbeln).
It can also be used in a derogatory way for someone who is supposed to be very good at cutting, e.g. for a surgeon or hairdresser. With friends in might be used in a non-serious, friendly way, which shows familiarity.
Related words would be Schnipsel (engl. snippet), and apparently it is sometimes spelled schnippeln as well (http://www.duden.de/rechtschreibung/schnippeln).