Snap reportedly planning layoffs

Snap Inc. is said to be in the early stages of planning layoffs.

The number of jobs cut remains unclear, according to people familiar with the plans, as managers are still planning.

Snap didn't want to make a statement on the matter.

In May, Snap CEO Evan Spiegel told employees that the company would slow hiring for the year.

Spiegel said that the company's second-quarter earnings report did not reflect the company's ambition.

He said that we are changing our business and strategy to reshape revenue growth, including innovating on our products, investing heavily in our direct response advertising business, and cultivating new sources of revenue to help diversify our topline growth.

In incredibly challenging conditions last month, Snap didn't make a forecast, sending shares down by 25%.

Other tech firms have announced layoffs or paused hiring recently.

Despite a much better than expected job report for July, layoffs are rolling in at a brisk pace at the beginning of August.

In July, 528,000 jobs were added to the U.S. economy, according to the Labor Department.

Momentum is expected to cool in the coming months.