LogInAround 150 Netflix employees and a number of part-time workers will be laid off as the company cuts its budget following subscriber losses.
Netflix is laying off about 150 employees, mostly in the US, as the streaming service faced slowing growth and cuts its budget for "business needs".
The news of the layoffs appeared in an internal letter to staff (via IGN) with Netflix Global Head of HR Sergio Ezama saying that redundancies were not driven by the individual performance of employees and "no one wants to lose great colleagues", although the changes are necessary due to the business needs.
The email also noted that there will be more layoffs in the coming months amidst budget constraints caused by slowing growth.
"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 Netflix spokesperson said. "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 news of Netflix layoffs comes just a month after the company reported that it had lost subscribers for the first time in more than a decade. The company's earnings report read that the number of subscribers of the streaming service fell by 200,000 in Q1 2022. Netflix also forecasted that in the coming quarter, the loss would amount to another 2 million subscribers.
Since then, Netflix already laid off about 25 employees in its marketing group, including many on its in-house editorial team, Tudum. Apart from that, Netflix said that layoffs will also affect many of its contract workers in its animation studio. Besides, the company will eliminate some freelance roles in its social media and publishing group.
Netflix is currently exploring various strategies to fuel its financial growth. Now, the company is focusing on mobile games, seeking ways to prevent the practice of sharing passwords for its streaming platform, and considering introducing a lower-cost, ad-supported subscription plan.
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