Snap Inc said on Tuesday its two top advertising executives had left the company, hours after a report emerged that Snapchat’s parent company planned to cut about 20% of its workforce.
The streaming prominent said executives Jeremi Gorman, chief commercial officer, and Peter Naylor, vice president of ad sales for the Americas, will join Netflix Inc.
Snap shares fell 4% in extended trading as Wall Street grew wary of the future of its advertising business, bringing in much of its revenue.
Earlier today, The Verge announced that Snap’s hardware division, responsible for Spectacles and the Pixy camera drone, is a team working to help developers build mini-apps and games in Snapchat and the Snapchat app. Zenly’s social mapping would be affected by the layoffs.
The social media company declined to comment on the report.
Tech companies, crypto exchanges and financial firms have cut jobs and slowed hiring as global economic growth weakens due to rising interest rates, runaway inflation and slumping in European energy.
Last month, Snap said some advertisers continued to face supply chain disruptions and labour shortages. Many more are facing rising costs amid record inflation, leading to cuts in advertising spending.
Shares of the company have lost nearly 39% since reporting its results on July 21, contributing to an 80% decline this year. Gorman will join Netflix as president of global sales, while Naylor will serve as vice president of advertising sales beginning in September, Netflix said in a statement.