In a new round of cuts, Netflix has laid off 150 employees across the company!
Netflix is making some room over there as they lay off employees with cuts happening all over the United States. The layoffs represent 2 percent of the streamer’s workforce, which results in the elimination of 70 roles in the animation department, as reported by The Hollywood Reporter.
Also, the company reduced the contractor roles in their social media and publishing channels.
A Netflix spokesperson states, “As we explained on earnings, our slowing revenue growth means we are also having to slow our cost growth as a company.” Continuing, “So sadly, we are letting around 150 employees go today, mostly U.S.-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.”
The cut comes after Netflix revealed losing 200,000 subscribers in the first quarter of the year and projected to lose another 2 million in the second quarter because of the drastic decline, the streamer plans to launch a cheaper, ad-supported tier. Plus, “pulling back” its spending to continue its margins. Although, the company will spend $17 billion on content.
CFO Spencer Neumann says, “We’re pulling back on some of our spend growth across both content and non-content spend.” He continues, “We’re trying to be smart about it and prudent in terms of pulling back on some of that spend growth to reflect the realities of the revenue growth of the business.”
Employees heavily impacted are expected to receive severance packages starting at four months. The time period could increase based on the staffer’s position and how long they have been working in the company.
If Netflix does not fix the cost of subscriptions, we are sure they will lose more employees.