Social media company Snap called time on an AR enterprise unit just months launching, as CEO Evan Spiegel conceded in a note to staff it was not able to make the necessary investment to make the business work.

Spiegel stated Snap had explored options for several months since launching AR Enterprise in March before concluding it would take significant capital to grow the offering, which was impossible in the current climate.

The Snap chief also explained several things had changed since beginning the foray and it had come to the realisation it could not simply use its existing mobile AR technology.

He said investment was needed to support web-based AR, “which is both technically complex and less engaging for our customers”.

Furthermore, Spiegel pointed to the advent of generative AI, which had “made it easier for companies of all sizes to create try-on experiences for their customers and made it harder for us to differentiate our offering”.

He added Snap’s performance in general had reduced its capacity to invest and it had to focus resources on its core advertising business.

Approximately 170 employees will lose their jobs as a result of the closure.