Netflix is laying off roughly 150 staff weeks after the streaming large posted its first loss in subscribers since 2011.
The job cuts had been outlined in an inside memo obtained by The Hollywood Reporter, which first reported the information.
A Netflix spokesperson confirmed the cuts on Tuesday, saying: “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.”
The layoffs characterize about 2% of the streaming large’s complete workforce.
“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 Netflix rep mentioned.
News of the cuts comply with a string of layoffs at Netflix’s Tudum division, which was launched in December.
Tudum, a nod to the sound that accompanies the Netflix’s brand when subscribers open the streaming web site, was a division that centered on information and tales associated to the service’s hottest exhibits and films.
At the time, sources advised The Post that one other wave of layoffs was imminent. They pointed to the company’s latest disappointing monetary report, in which it mentioned it lost 200,000 subscribers in the primary quarter.
The streamer, which is dwelling to hit exhibits like “Inventing Anna,” “Squid Game” and “Bridgerton,” additionally mentioned it expects to lose 2 million extra in the second quarter. Netflix at the moment has 221.6 million subscribers, which remains to be greater than the competitors.
In order to stem the bleeding, Netflix co-CEOs Reed Hastings and Ted Sarandos mentioned the company would possible crack down on password sharing.
The CEOs are additionally trying to launch a lower-priced ad-supported tier by the top of the year, a a lot faster timeline than initially envisioned, in an effort to pump up income and subscribers.
The Los Gatos, Calif.-based streaming large at the moment presents a number of cost tiers, together with its hottest plan, which prices $15.49 a month. The value of the cheaper ad-supported tier has not been introduced.
Other streaming suppliers have comparable plans and ad-supported choices. HBO Max, for instance, presents an ad-free service for $15 a month, and it expenses $10 a month for the service with commercials.