Snap Inc expects to miss its quarterly revenue targets, the company said in a filing on Monday, and will slow hiring for this year, Chief Executive Evan Spiegel told employees.

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The parent company of photo messaging app Snapchat said economic conditions have "deteriorated further and faster than anticipated," according to the filing.

Challenges facing the company include rising inflation, supply chain shortages and the impact of the war in Ukraine, Spiegel said in a memo seen by Reuters.

Shares of Snap dropped 28% in after-market trading.

Last month, Snap forecast second-quarter revenue growth of 20% to 25% over the previous year.

The news follows statements by companies including Uber Technologies Inc and Facebook-owner Meta Platforms Inc earlier this month that they would rein in costs and hiring.

In the memo, Spiegel said Snap would evaluate the rest of this year`s budget and "leaders have been asked to review spending to find additional cost savings."

Some planned hiring will be pushed into next year, though the company still expects to hire more than 500 people by the end of this year, he said.