Netflix has found an executive to lead the plan for an ad-supported tier: Snap’s chief business officer and top ad executive, Jeremi Gorman.
Gorman told colleagues at Snap on Tuesday that she was leaving to join Netflix along with Peter Naylor, Snap’s vice president of ad sales for the Americas, according to two people familiar with the matter. Russ Caditz-Peck, a Snap spokesperson, confirmed the departures.
Both Gorman and Naylor are leaving Snap amid a restructuring of the ad team and layoffs that hit the social media this week. Snap plans to cut about 20 percent of its workforce starting Wednesday, The Verge previously reported.
Netflix has had its own rounds of layoffs this year, cutting hundreds of employees and reducing programming after reporting its first subscriber loss in a decade. Now the company is preparing to launch a cheaper ad-supported tier that could cost between $7-$9 per month and exclude extras, such as the ability to download videos.
Kumiko Hidaka, a spokesperson for Netflix, confirmed that Gorman will be the company’s president of Worldwide Advertising and that she will report to COO Greg Peters. Naylor will lead Netflix’s ad sales organization and report to Gorman. AdAge first reported on the hires.
“Jeremy’s deep experience running ad businesses and Peter’s background in leading ad sales teams together will be key as we expand membership opportunities for consumers through a new ad-supported offering,” Peters said in a statement.