Netflix axes over 150 jobs in the wake of slowing revenue growth

Netflix axes over 150 jobs in the wake of slowing revenue growth

by Pranali Mehta

Netflix has reportedly announced that it has laid-off over 150 employees, mainly U.S. staffers, to alleviate the increasing strain of costs in face of a slowing growth in revenues.

A spokesperson of Netflix, in an email, stated that as the company experiences a reduction in earnings, it needs to subsequently reduce the amount of cost required for its growth. The company expressed deep sorrow over its decision to let go of approximately 150 of its employees, primarily from the U.S. pool.

The spokesperson added that such difficult decisions are taken in terms of the business needs and not individual performance. The company will support the laid off workers the best it can through this difficult situation.

Reportedly, some of the employees who have been dismissed are from creative team and also include the original content team members. Supposedly, directors from the original series catalog, like Negin Salmasi, and Sebastian Gibbs, have been let go.

As per reports, Netflix had already mentioned the discontinuation of staff members in its quarterly letter to shareholders. The company’s revenue growth has slowed considerably as its results as well as forecast show.

The company reported a revenue of over $7.87 billion for the first quarter of 2022, while also recording a 200,000 decline in subscribers. Analysts had predicted revenues of $7.93 billion and more than 2.7 million subscribers. Nevertheless, a step like this was on horizon as soon as the results hit. 

Netflix reportedly removed 25 people from its newly launched site Tudum, considering it not much important for the core business, Netflix decided to cut down people from this project. 

The further layoffs, however, indicates that the streamer is cutting operations more decisively in order to keep its costs in check as the streaming scenarios become more competitive.

Netflix has been going through choppy waters as of late, the company has started efforts to crack down on the issue password sharing and has also unveiled a low-cost ad-supported tier to gain new subscribers and drive company growth.

Source credit: https://techcrunch.com/2022/05/17/netflix-lays-off-150-staffers-citing-slowing-revenue-growth/

Pranali Mehta

A chemical engineer by qualification, Pranali Mehta dutifully walked down the slated path and worked in a chemical firm for a year. Her passion for writing however, pushed her into experimenting with the same as a career. With over three years of experience in content writ Read more...