Following a negative earnings report, Netflix is letting off roughly 150 employees and agency contractors, citing “slowing revenue growth,” as originally reported by Variety.
According to a person familiar with the issue, at least 26 employees working on the company’s fan-focused Tudum website, which acts as a complement to Netflix’s programming, have been laid off. Prior to this wave of layoffs, Netflix fired roughly 25 marketing employees, including close to a dozen Tudum employees. A mass email was sent to the 26 employees that were laid off today.
The streaming giant has confirmed that most employees affected by the layoffs are located in the US. Netflix spokesperson Erika Masonhall issued the following statement in response to the request for comment, noting that the layoffs were mainly driven by financial issues, rather than performance: “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 US-based. 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. A number of agency contractors have also been impacted by the news announced this morning. We are grateful for their contributions to Netflix.”
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.