Snap top ad executives exit amid report on staff cut plans

Snap shares fell 4% in extended trading following its two senior advertising executives have exiting the company

Snap Inc said on Tuesday its two senior advertising executives have exited the company, hours after a report disclosed the Snapchat parent was planning to cut about 20% of its workforce.

The executives Jeremi Gorman, chief business officer, and Peter Naylor, vice president of ad sales for the Americas, will join Netflix Inc, the streaming major said.

Snap shares fell 4% in extended trading as Wall Street turns wary of the future of its advertising business, which brings in a large chunk of its revenue.

The Verge earlier in the day reported Snap's hardware division, responsible for Spectacles and the Pixy camera drone, its team working to help developers build mini apps and games inside Snapchat and social mapping app Zenly, will be hit by the lay-offs.

The social media firm declined to comment on the report.

Technology companies, crypto exchanges and financial firms have cut jobs and slowed hiring as global economic growth weakens due to higher interest rates, red-hot inflation and an energy crisis in Europe.

Last month, Snap said some advertisers continue to face supply-chain disruptions and labor shortages, and many others are contending with rising costs amid record inflation, which have led to cutbacks in spending on advertising. 

The company's shares have lost nearly 39% since it posted results on July 21, contributing to an 80% decline this year.

Gorman will join Netflix as president of worldwide sales, while Naylor will be vice president of advertising sales starting September, Netflix said in a statement.