Snap has cut ties with two of its top advertising executives in the wake of reports that it is slashing its global headcount by 20%, with the pair heading for Netflix as the streaming giant prepares for ad-funded subscriptions.
The Los Angeles-based social network is parting ways with chief business officer Jeremi Gorman and VP of ad sales for the Americas, Peter Naylor. Gorman is joining Netflix as president of worldwide advertising and Naylor has been appointed VP of advertising sales. The pair start in late September.
Posting on LinkedIn, Gorman confirmed the news, writing: "I am excited to share that Peter Naylor and I will be joining Netflix in late September! As the president of worldwide advertising, I am eager to build an incredible team, and to help bring great ad experiences to members and the advertising community."
A spokesperson for Snap confirmed Gorman and Naylor's departures but declined to comment on the job cuts and restructure. Netflix has not responded at the time of writing.
According to reporting by The Verge, Snap plans to slash one fifth of its 6,466-strong headcount, or nearly 1300 roles, as the digital media industry faces an advertising downturn. The report said that redundancies will begin this week, affecting some departments more than others. Deep cuts will hit the team responsible for working with developers on apps and games, social mapping app Zenly, acquired by Snap in 2017, and its hardware division.
Addressing her former colleagues at Snap, Gorman said her time there had been "the ride of a lifetime," adding that she will "miss every single thing about it, but mostly, the kind, smart, and creative people inside the walls."
Following news of its planned job cuts, shares in Snap fell more than 6% in after-hours trading on Tuesday. The company has lost nearly 80% of its value in the past year.
Gorman has been at Snap for nearly four years, having joined in November 2018. Prior to that she was at Amazon for more than six years in various senior ad roles. She has also worked in ad roles at Yahoo and Variety.
Naylor has spent nearly two and a half years at Snap. Before that, he was at streaming service Hulu heading up ad sales.
At Netflix, the pair will lead the development of its global ad strategy as the streaming giant breaks free from its subscription-only business model and opens up to advertising-subsidised tiers. According to AdAge, Gorman will report to COO and chief product officer Greg Peters, while Naylor will report to Gorman.
Earlier this summer, Campaign reported that Danielle Crook-Davies, Netflix VP for marketing, EMEA, was leaving the streaming service to move back to Los Angeles. She joined Netflix in 2014.
This story first appeared on campaignlive.co.uk.