By Sheila Dang

(Reuters) – Snap Inc (NYSE:) The company expects to miss its quarterly revenues targets. This was stated in Monday’s filing. Chief Executive Evan Spiegel informed employees that he will be slowing down hiring this year.

According to the filing, Snapchat’s parent company stated that economic conditions had “deteriorated further” and “faster than expected.”

Spiegel stated that the company faces challenges such as rising inflation and supply chain shortages, along with the effects of war in Ukraine.

Snap’s shares dropped by 28% during after-market trades

Snap projected revenue growth for the second quarter of 2012 at 20% to 25%, compared with last year.

This news comes after statements made earlier in the month by Uber Technologies (NYSE.) Inc and Meta Platforms Inc, which are owned by Facebook. They said they planned to reduce costs and hire more people.

Spiegel stated in the memo that Snap would review the remainder of the budget for the year and that “leaders were asked to examine spending to identify additional cost-saving opportunities.”

Although some hiring plans will be delayed until next year, the company still anticipates that it will hire more than 500 workers by the end, he stated.