Snap Inc. is laying off about 10% of its workforce, which equates to roughly 540 employees.

The company faces a slowdown in advertising revenue and is cutting jobs and projects to reduce costs.

Snap has already shut down an augmented reality services division for businesses four months prior, impacting 170 jobs.

The stock dropped up to 2.4% in New York trading following the announcement.

The layoffs are part of a larger trend in the tech industry, with over 100 companies announcing job cuts affecting nearly 32,000 workers.

Investors are generally in favor of the cost-saving measures amidst the industry's financial pressures.

Despite the cutbacks, Snap maintains a user base of 406 million daily users and over 5 million Snapchat+ subscribers.

Snap's financial performance will be further detailed in the upcoming quarterly earnings report on Tuesday.