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Hit by slow revenue growth, Streaming giant Netflix lays off 150 employees

Streaming giant Netflix has laid off nearly 150 employees, primarily in the US, as it suffers from slow user growth amid stalled paid subscription.

Netflix

Netflix saw its stock tumbling by 20 per cent after it reported a loss of 2 lakh paid subscribers in the first quarter of 2022.

IANS San Francisco
Streaming giant Netflix has laid off nearly 150 employees, primarily in the US, as it suffers from slow user growth amid stalled paid subscription.
Several top-notch creative professionals from its original series vertical, such as Sebastian Gibbs and Negin Salmasi, have been asked to go, reports TechCrunch.
"As we explained on 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," a Netflix spokesperson was quoted as saying in the report late on Tuesday.
"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," the spokesperson added.
Netflix saw its stock tumbling by 20 per cent after it reported a loss of 2 lakh paid subscribers in the first quarter of 2022, its first subscriber loss in over a decade.
Moreover, it now forecasts a global paid subscriber loss of 20 lakh for the April-June quarter (Q2).
Netflix last month laid off several experienced journalists and writers working for its entertainment site Tudum which it launched only in December last year.
Netflix had hired experienced entertainment journalists from publications including Vice, Bustle and others. According to reports, most of the Tudum culture and trends team was fired.
The company has also told its employees that if they do not agree with its content, they can leave the streaming giant, a move that received a thumbs up from Tesla CEO Elon Musk.
"Depending on your role, you may need to work on titles you perceive to be harmful. If you'd find it hard to support our content breadth, Netflix may not be the best place for you," the company said.
--IANS
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(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: May 18 2022 | 10:02 AM IST

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