In an announcement likely to come later today, Snap (SNAP) will lay off about 20% of its workforce, according to The Verge. That would mean over 1,000 job cuts out of its more than 6,400 employees. Shares fell 6% in extended trading on the news, following an 80% slump this year as the company and rivals face a broad advertising slowdown.

The messaging app has faced serious headwinds in the current business environment, even telling shareholders that it wouldn't offer specific guidance for the current quarter. It comes after a two-year expansion driven by pandemic lockdowns, with users spending more time on social media platforms. Rising interest rates have recently weighed on the tech sector and many in the industry have turned to cost-cutting measures to combat a wider economic slowdown.

The macroeconomic conditions have prompted advertisers slash their budgets, while Apple's (AAPL) privacy changes have also made it harder to unleash successful targeted advertising campaigns. As part of the shakeup at Snap, executives Jeremi Gorman, chief business officer, and Peter Naylor, vice president of ad sales for the Americas, are jumping ship to Netflix (NFLX).

As it slashes 20% of its workforce, the deep cuts won't land evenly. The company is eliminating staff that work on developing mini-apps and games inside Snapchat, as well as social mapping unit Zenly - and its hardware division, which works on Snap Spectacles and the recently shelved Pixy drone.