SnapCEO Evan Speigel stated Monday that the company will not meet its revenue targets and adjust earnings goals for this quarter. This was in a memo to employees.

Speigel also stated that it will slow down hiring for the remainder of the year to help manage costs. This letter was submitted to the Securities and Exchange Commission.

In the note, Spiegel stated that “Today we filed an8-K” to share the fact that the macro environment had deteriorated faster and further than we expected when we published our quarterly guidance. The note stated that while revenue is still growing year-over-year and it continues to rise, it’s increasing more slowly than what we anticipated.

Snap will be available in April reported first-quarter earningsWall Street’s expectations of sales and profits were not met. According to the company, it anticipated revenue growth between 20% and 25% annually. Adjusted earnings before interest tax, depreciation or amortization was estimated to be between $0 million and $50 millions.

Spiegel stated Monday that it was now possible for us to report adjusted EBITDA and revenue below the low end in the guidance range provided.

Spiegel indicated that Snap will keep recruiting new employees but slow down the pace of its hiring throughout the year. The note states that Spiegel still anticipates Snap to hire 500 additional employees in the next year. In the 12 month period, about 2000 employees were hired by Snap.

Spiegel reports that Snapchat’s maker faces rising inflation, high interest rates, shortages in supply chains, disruptions to labor, and changes in platform policies, such as the removal of Apple’s iPhone privacy function. Also, the conflict in Ukraine is having a negative effect on users.

Spiegel said that “our most significant gains in the coming months will be as a result improved productivity of our existing team members.”