Snap Inc said on Wednesday it was shutting its division focused on making augmented reality (AR) services for businesses months after it was launched, as the ad-dependent social media company struggles in a tough economy.

The closure of the division will result in 170 job cuts, Snap said.

"After exploring our options over the past few months, it became clear that it would take significant incremental investment to grow our enterprise offering for retailers and we simply cannot make that investment at this time," CEO Evan Spiegel said in a note to employees.

(Reporting by Chavi Mehta in Bengaluru; Editing by Shinjini Ganguli)