At a Glance:
- Netflix laid off nearly 150 employees—primarily from the U.S.—given the slow growth of the company.
- These layoffs represent almost 2% of Netflix’s workforce from the United States and Canada.
- The concerning loss of subscribers has now incited Netflix to consider other options and it might come up with a cheaper, ad-supporting plan.
Recently, one of the biggest streaming services in the world, Netflix, confirmed that it has laid off nearly 150 employees from the U.S. —primarily—given the slow growth of the company. These layoffs represent almost 2% of Netflix’s workforce from the States and Canada.
There was also an official statement released by the company stating the decision was primarily driven by the business needs rather than individual performance.
The statement read, “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.”
Netflix faces a decline in growth
Netflix has been witnessing a loss of subscribers which has caused deeper losses in the coming quarter. This reported the first loss of subscribers has driven the company to job cuts. Also, the war between Ukraine and Russia has impacted the competition contributing to more loss of customers.
The concerning loss of subscribers and the declining growth of the company have now incited Netflix to consider other options. It is being anticipated that Netflix might come up with a cheaper, ad-supporting plan. However, it is not confirmed yet and the company has to closely study the spending.
During the earnings call, the Chief Financial Officer of Netflix, Spencer Neumann addressed the investors and said, “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.”
