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Netflix Lays off More Than 150 Employees

Netflix Lays off More Than 150 Employees
Source: Verge

Following a dismal financial report, Netflix is letting off about 150 workers as well as dozens of contractors, citing “slowing revenue growth,” as originally reported by Variety.

At least 26 contractors working on the company’s fan-focused Tudum website, which acts as a complement to Netflix’s programming, have been laid off, according to a person familiar with the issue. Prior to this wave of layoffs, Netflix had lost around 25 marketing positions, including about a dozen from Tudum. The 26 employees who were let off today received notice in a mass email from the contracting business, according to Netflix spokesperson Erika Masonhall.

According to The Verge, the majority of those affected by the layoffs are based in the United States. In response to The Verge’s request for comment, Masonhall provided the following statement, stating that the layoffs were primarily motivated by financial concerns rather than performance.

Netflix lost about 200,000 users last quarter, the first time the service has lost subscribers in over a decade. It also expects to lose another $200,000 in the coming quarter. The loss of customers is partly due to Russia’s invasion of Ukraine, since Netflix shut down its services in Russia in March. Netflix had a quiet quarter, with fewer big Hollywood movies released, which didn’t help matters.

Netflix’s chief financial officer, Spencer Neumann, stated on the firm’s earnings call last quarter that the business will be cutting expenditure for the next two years or so.

As it tries to restart subscriber growth, the streaming behemoth has notified staff that a cheaper, ad-supported version will emerge later this year, as well as a crackdown on password sharing.