Less than a month after reporting its first subscriber decline in a decade, Netflix is cutting off about 150 staff throughout the firm. The laid-off employees make up less than 2% of the 11,000 workers and are largely from the United States.
“So sadly, we are letting around 150 employees go today, mostly US-based. These changes are primarily driven by business needs rather than individual performance, which makes them especially tough as none of us wants to say goodbye to such great colleagues. We’re working hard to support them through this very difficult transition,” the representative said.
A representative told CNBC, “as we explained on earnings, our slowing revenue growth means we are also having to slow our cost growth as a company.”
Netflix’s shares dropped roughly 70%
Netflix said it would introduce a cheaper, ad-supported tier and look more closely at its spending. “We’re trying to be smart about it and prudent in terms of pulling back on some of that spend growth to reflect the realities of the revenue growth of the business,” Netflix Chief Financial Officer said. According to media sources, several of those sacked worked for Tudum, a website that helps promote movies and TV shows.
The website was designed to serve as a “backstage pass” for Netflix viewers. It was for enthusiasts wanting to learn more about the films and programs.
Along with the loss of global subscribers, Netflix lost roughly 700,000 paid subscribers in Russia. The firm had shut down its operations in Russia following the invasion of Ukraine. The shares of the company have dropped roughly 70% since the beginning of the year. The streaming giant is working to combat widespread password sharing. Password sharing affects 100 million households in addition to the 222 million paying subscribers.