Netflix is shedding round 150 workers and company contractors following a disappointing earnings report, citing “slowing revenue growth,” as first reported by Variety.

A supply aware of the scenario tells The Verge the layoffs embody no less than 26 workers members engaged on the corporate’s fan-focused Tudum web site, which serves as a complement to Netflix’s content material. Previous to this latest spherical of layoffs, Netflix let go of round 25 advertising workers members, together with near a dozen who labored on Tudum. The 26 workers laid off at the moment have been knowledgeable of the transfer in a mass e-mail.

The streaming big has confirmed to The Verge that almost all workers affected by the layoffs are positioned within the US. Netflix spokesperson Erika Masonhall issued the next assertion in response to The Verge’s request for remark, noting that the layoffs have been primarily pushed by monetary points, fairly than efficiency:

As we defined on earnings, our slowing income development means we’re additionally having to gradual our value development as an organization. So sadly, we’re letting round 150 workers go at the moment, largely US-based. These adjustments are primarily pushed by enterprise wants fairly than particular person efficiency, which makes them particularly powerful as none of us need to say goodbye to such nice colleagues. We’re working laborious to help them by way of this very tough transition. Plenty of company contractors have additionally been impacted by the information introduced this morning. We’re grateful for his or her contributions to Netflix.

Final quarter, Netflix reported shedding round 200,000 subscribers — the primary time Netflix has misplaced subscribers in over a decade. It additionally expects to lose an extra 2 million within the subsequent quarter. Russia’s invasion of Ukraine is partially in charge for the loss in subscribers, as Netflix shut down its companies in Russia in March. Netflix had a low-key quarter with fewer enormous Hollywood hits launched on the platform, which didn’t assist both.

Spencer Neumann, Netflix’s chief monetary officer, mentioned throughout final quarter’s earnings call that the corporate shall be pulling again on spending for the subsequent two years or so.

The streaming big has advised workers a less expensive, ad-supported choice will launch later this 12 months in addition to a crackdown on password sharing because it makes an attempt to reignite subscriber development.

Disclosure: The Verge is at present producing a sequence with Netflix.

Further reporting by Mia Sato.


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