Netflix has reportedly fired 150 staffers, mostly in the US, as it reduce operational costs after its top-line growth slowed down.
According to Variety, these job slashes come across departments and are driven by the need to reduce expenses. The layoffs represent roughly 2% of Netflix’s US workforce.
“As we explained [in reporting Q1] earnings, our slowing revenue growth means we are also having to slow our cost growth as a company,” a Netflix representative said in an emailed statement to local media. “So sadly, we are letting around 150 employees go today, mostly U.S.-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.”
Also Read | ‘Black Mirror’ Season 6 reportedly in the works: What we know so far
Netflix is also eliminating about 70 part-time jobs in its animation studio. It is also cutting freelance roles in its social media and publishing group.
Several projects, including “Wings of Fire” from executive producer Ava DuVernay; “Antiracist Baby,” a series aimed at preschoolers; and “With Kind Regards From Kindergarten,” have also been axed, Variety reported.
“A number of agency contractors have also been impacted by the news announced this morning,” the Netflix spokesperson said. “We are grateful for their contributions to Netflix.
Also Read | The Empire Writes Back: ‘The Archies’ and appropriating American culture
Netflix shocked the Wall Street in the first quarter of 2022, reporting a net loss of 200,000 streaming customers — its first decline in more than a decade, which has been blamed partially on its password sharing, reducing the number of new users. And the company said it expects to drop 2 million more subscribers in Q2.
The stock is down 68% year-to-date.
The job cuts come after Netflix laid off about 25 employees in its marketing group last month.
On Netflix’s Q1 earnings interview with analysts, CFO Spencer Neumann was asked about cost cuts. He said that the company would be “responsible in terms of how we manage the business.”
“During this period of slower revenue growth, we’re going to protect our operating margins,” Neumann said, at the time.