Top Snap Advertising Executives Leave amid Reports of Employee Reduction Plans in 2022
Snap shares were down 4% in post-closing trading after two top executives left the announcement
Snap Inc. said on Tuesday that two of its top advertising executives have left the company, following reports that Snapchat’s parent company plans to cut about 20% of its workforce.
The streaming giant said chief commercial officer Jeremy Gorman and vice president of advertising sales for the Americas Peter Naylor will join Netflix Inc.
Snap shares fell 4% in after-hours trading, as Wall Street was cautious about the future of its advertising business, which generates a large portion of its revenue.
Earlier today, The Verge reported that the Snap hardware division responsible for Spectacles and Pixy camera drones, whose team is dedicated to helping developers build apps and mini-games for Snapchat and social mapping app Zenly, will take layoffs to strike.
The social media company declined to comment on the report.
Tech companies, cryptocurrency exchanges, Executives, and financial firms cut jobs and slowed hiring as rising interest rates, overheating inflation and the European energy crisis slowed global growth.
Last month, Snap said that some advertisers were still facing supply chain disruptions and labor shortages, while many others had struggled with rising costs amid record inflation, slashing ad spending.
The company’s shares have fallen nearly 39% since the company announced results on July 21, which has led to a decline of 80% for the year.
In a statement, Netflix said Gorman will join Netflix as head of global sales, while Naylor will serve as vice president of advertising sales starting in September.
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