Netflix Lays Off 150 Employees Due To 'Slow Revenue Growth'
Netflix said it is working hard to support laid-off employees during the transition.
New Delhi: Netflix has laid off 150 employees, mostly located in the US, as it is facing an unprecedented slowdown in revenue growth. The streaming platform confirmed the news in media statements. As per a report by The Verge, the cuts also comprise at least 26 contractors working on Netflix’s own fan-focussed Web portal, Tudum. The company asserted that the cuts were made in a need to reduce expenses and had nothing to do with the performance of individual employees. As per a report by Variety, the recent layoffs represent around two percent of the total workforce of Netflix in the US.
As per Variety, a Netflix representative said in an emailed statement, “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 letting around 150 employees go today, mostly US-based.
“These changes are primarily driven by business needs rather than individual performance, which makes them especially tough as none of us want to say goodbye to such great colleagues. We’re working hard to support them through this very difficult transition.”
Apart from the above, around 70 more part-time jobs in Netflix’s animation studio have also been cut short. Variety reports that the OTT streamer is also cutting freelance positions in its social media and publishing group.
Eugenee L., a talent acquisition officer at Netflix who got laid off, wrote on LinkedIn, “Today is a very sad day. There’s been a lot of layoffs happening in big-tech, and as of this morning, Netflix, unfortunately, joined the bandwagon. About 150 of the most amazing, kind, talented individuals I’ve ever had the chance of working with were let go alongside me.”
The fresh round of cuts comes under the backdrop of Netflix updating its culture guidelines, directing its employees to quit if they don’t agree with its content.
"Not everyone will like — or agree with — everything on our service. While every title is different, we approach them based on the same set of principles: we support the artistic expression of the creators we choose to work with; we program for a diversity of audiences and tastes; and we let viewers decide what’s appropriate for them, versus having Netflix censor specific artists or voices," Netflix said in its cultural memo update.
To cover losses, Netflix is also planning to roll out a cheaper, ad-supported plan in the fourth quarter of this year. The streaming giant has reportedly informed its employees that it intends to introduce the plan by the end of this year.
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