Due to dismal results and slow revenue growth, Netflix is reportedly cutting off almost 150 staff in the next days.
According to Variety, the Amazon Prime Video competitor may also cancel its contractual contributors’ contracts.
About 2% of Netflix’s US employees has been laid off. “As we mentioned [in reporting Q1] earnings, our slowing revenue growth requires us to slow our cost growth as well.” “Unfortunately, we are laying off about 150 employees today, the most of whom are situated in the United States,” a Netflix spokeswoman stated.
According to the statement, the decision was mostly based on business considerations rather than individual performance. Netflix earned $7.87 billion in the first quarter, falling shy of Wall Street expectations of $7.93 billion.
According to the source, approximately 70 part-time staff at Netflix’s animation studio would be forced to quit. According to The Verge, roughly 26 contractors working on Netflix’s fan-focused Tudum website may be laid off.
“The news delivered this morning has also impacted a number of government contractors.” “We appreciate their efforts to Netflix,” Netflix stated.
In its most recent earnings call, Netflix reported that it has lost thousands of customers, a first in almost a decade.
Due to the ongoing conflict between Russia and Ukraine, the company expects to lose another $2 million in the coming quarter. Following Russia’s invasion of Ukraine, Netflix has ceased operations in the country.