Snap to close AR division for enterprises months after launch

FILE PHOTO: Traders gather at the post where Snap Inc. is traded, just before the opening bell on the floor of the New York Stock Exchange (NYSE) in New York, U.S., May 11, 2017. REUTERS/Brendan McDermid/File Photo

(Reuters) -Snap Inc is shutting its division focused on making augmented reality (AR) services for businesses within months of its launch, as the ad-dependent social media company struggles in a tough economy.

The closure of the division will result in about 170 job cuts, said Snap, which like other social media firms, has been facing the brunt of weak advertising spending from inflation-hit businesses since early last year.