Snap has cut its quarterly forecast amid a growing economic downturn, adding to a similar decision by the company to reduce the number of job opportunities it will introduce this year.
Since April, “the macroeconomic environment has deteriorated further and faster than anticipated. As a result, we believe it is likely that we will report revenue and adjusted EBITDA below the low end of our Q2 2022 guidance range,” the company said in a U.S. securities filing.
Snap chief executive Evan Spiegel told employees in a statement that the company would reduce hiring by 2022 while addressing a wide range of issues.
“Like many companies, we continue to face rising inflation and interest rates, supply chain shortages and labor disruptions, platform policy changes, the impact of the war in Ukraine and more,” Spiegel said.
Snap is one of several tech companies cutting costs and lowering its revenue forecast for the year as uncertainties and supply chain problems force many to scale back their original sales forecasts.
The decision to sanction Russia for invading Ukraine has led to many countries boycotting Russian oil, which has led to a shortage of oil in several European countries, driving up inflation in those countries and around the world.