Netflix is laying off about 150 employees and hired staffing agencies after a disappointing earnings report, citing “slowing revenue growth,” as first reported by Variety†
A source familiar with the situation says: The edge the layoffs include at least 26 staff members who work on the company’s fan-focused Tudum website, which serves as a complement to Netflix’s content. Prior to this recent layoff, Netflix let go of about 25 marketing employees, including nearly a dozen who worked on Tudum. The 26 employees who were laid off today were notified of the move in a massive email.
The streaming giant has confirmed that The edge that most of the workers affected by the layoffs are in the US. Netflix spokesperson Erika Masonhall issued the following statement in response to: The edge‘s request for comment, noting that the layoffs were primarily driven by financial problems, rather than performance:
As we explained about earnings, our slowing revenue growth means we also need to slow our cost growth as a business. So unfortunately we are letting about 150 employees leave today, mostly in the US. These changes are primarily driven by business needs rather than individual performance, which makes them all the more difficult because none of us want to say goodbye to such great colleagues. We are working hard to support them during this very difficult transition. A number of employment agencies have also been hit by the news announced this morning. We are grateful for their contributions to Netflix.
Last quarter, Netflix reported losing about 200,000 subscribers — the first time Netflix lost subscribers in more than a decade. It also expects to lose an additional $2 million in the next quarter. The Russian invasion of Ukraine is partly responsible for the loss of subscribers, as Netflix shut down its services in Russia in March. Netflix had a quiet quarter with fewer major Hollywood hits being released on the platform, which didn’t help either.
Spencer Neumann, Netflix’s chief financial officer, said during last quarter’s earnings call that the company will cut spending over the next two years.
The streaming giant has told employees that a cheaper, ad-supported option will be launched later this year, as well as a password-sharing crackdown as it tries to reinvigorate subscriber growth.
Revelation: The edge is currently making a series with Netflix.
Additional reporting by Mia Sato.