Netflix laid off 150 employees due to weak revenue growth and business interests.
Netflix is reportedly laying off nearly 150 employees in the coming days due to disappointing earnings and slow revenue growth.
According to a Variety report, the Amazon Prime Video rival might also terminate its contract with contractual contributors.
The layoffs are about 2 percent of Netflix’s US workforce. “As we explained [in reporting Q1] earnings, our slowing revenue growth means we also have 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.
The statement further revealed that the decision was primarily driven by business needs rather than individual performance. Netflix reported $7.87 billion in Q1, short of Wall Street’s estimates of $7.93 billion.
The report further reveals that nearly 70 part-time employees in Netflix’s animation studio will have to pack up and leave. A statement by The Verge stated that about 26 contractors working on Netflix’s fan-focused Tudum website might see a termination.
“The news has also impacted several agency contractors announced this morning. We are grateful for their contributions to Netflix,” the company said.
In its recent earnings call, Netflix revealed that it lost thousands of subscribers, which is a first for the company in over a decade.
The company expects to lose an additional 2 million in the next quarter due to the ongoing war between Russia and Ukraine. Netflix has shut shop in Russia following the country’s invasion of Ukraine.
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