Netflix, the streaming behemoth fires 150 employees to cut business costs due to a downfall in the viewership
The majority of the layoffs are in the United States, with some in the leadership ranks and the animation section. They account for around 1.3 percent of the 11,300 workers reported at the end of 2021. The cuts were predicted after Netflix said last month that global subscribers fell by 200,000 in the first three months of the year, the first dip in over a decade, and officials said they would aim to slash expenses.
“As we explained on 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 spokesperson told CNBC. “These changes are primarily driven by business needs rather than individual performance, which makes them especially tough as none of us want to say goodbye to such great colleagues. We’re working hard to support them through this very difficult transition.”
The layoffs come less than a month after Netflix announced its first subscriber drop in a decade and predicted further losses in the next quarter. Since January, the company’s stock has dropped roughly 70%.
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.
Netflix’s co-CEO, Reed Hastings, stated during the firm’s earnings call last month that the business is looking into lower-priced, ad-supported tiers in an effort to attract new users following years of resistance to commercials on the site.
It was also reported that besides the 220 million subscribers of the streaming service, there are additional 100 million users through password sharing, and they may even bring about some changes in their policies. For better or worse, the layoffs are sure to attract a lot of criticism from the mass and media.