Snap Inc, the parent company of Snapchat, recently announced that it will not meet its quarterly revenue targets and will be slowing down its hiring efforts for the rest of the year. The company attributes these challenges to the worsening economic conditions, which have deteriorated at a faster rate than expected.

Snap Inc is currently facing several obstacles, including the impact of the ongoing war in Ukraine, supply chain shortages, and rising inflation. CEO Evan Spiegel addressed these concerns in a memo, acknowledging that external factors are affecting the company. As a result, Snap Inc’s shares have seen a significant decline of 28% in after-market trading.

This news follows similar announcements from other tech giants, such as Uber and Facebook’s parent company Meta Platforms Inc. These companies have also expressed the need to cut costs and curb hiring in response to the challenging economic environment. In his memo, Spiegel revealed that Snap Inc will be reviewing its budget for the remainder of the year, with a focus on finding additional cost savings.

While some hiring plans will be postponed until next year, Snap Inc still plans to hire over 500 individuals by the end of this year. The company will be reevaluating its hiring strategies and making necessary adjustments to navigate the current economic landscape. Despite the unforeseen challenges, Snap Inc remains committed to sustaining its growth and providing its products and services to millions of users worldwide.

Useful links:
Reuters: Snap falls short of revenue target on worsening economic conditions
CNBC: Snap’s stock falls after Bank of America lowers price target amid growth fears