Netflix to layoff nearly 150 employees due to poor revenues

Netflix is laying off around 150 employees across the company less than a month after the streaming giant reported its first subscriber loss in a decade. The laid-off employees account for less than 2 percent of the 11,000 staffers and are mostly based in the US. According to a Variety report, the Amazon Prime Video rival might also terminate its contract with contractual contributors. The layoffs are about 2 per cent of Netflix’s US workforce. “As we explained [in reporting Q1] earnings, our slowing revenue growth means we are also having to slow our cost growth as a company. So sadly, we are letting around 150 employees go today, mostly U.S.-based,” a Netflix spokesperson said. 

The statement further revealed that the decision was primarily driven by business needs rather than individual performance. Netflix reported $7.87 billion in Q1, which was short of Wall Street’s estimates of $7.93 billion. The report further reveals that nearly 70 part-time employees in Netflix’s animation studio will have to pack up and leave. A report by The Verge stated that about 26 contractors working on Netflix’s fan-focused Tudum website might see a termination. “A number of agency contractors have also been impacted by the news announced this morning. We are grateful for their contributions to Netflix,” the company said. Netflix, in its recent earnings call, revealed that it lost over 2 lakh subscribers, which is a first for the company in over a decade. The company expects to lose an additional 2 million in the next quarter due to the ongoing war between Russia and Ukraine. Netflix has shut shop in Russia following the country’s invasion of Ukraine.