Why is Netflix laying-off it’s ‘150’ employees
Netflix lays off 150 employees due to slow revenue growth and business needs
Reports have revealed that Netflix is laying off about 150 of it’s employees in the coming days due to disappointing earnings and slow revenue growth. According to a different sources, the Amazon Prime Video rival might also terminate its contract with contractual contributors. Netflix’s layoffs are about 2 per cent of it’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. So sadly, we are laying off around 150 employees today, mostly U.S.-based,” a Netflix spokesperson said.
The revelation further disclosed that the decision was primarily driven by business needs rather than individual performance. Netflix reported $7.87 billion in Q1, which was 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.
In another report by The Verge stated that about 26 contractors working on Netflix’s fan-focused Tudum website might see a termination. “A number of agency contractors have also been impacted by the news announced this morning. We are grateful for their contributions to Netflix,” the company said.
Netflix, in its recent earnings call, revealed that it had lost thousands of it’s subscribers, which is a first for the company in over a 10years. The company is even expecting to lose an additional 2 million in the next quarter due to the ongoing war between Russia and Ukraine. Note that Netflix has currently closed it’s shop outlet in Russia following the country’s invasion of Ukraine.