Netflix Lays Off More Workers After Subscriber Loss
The streaming giant says slowing revenue means it needs to cut costs.
Netflix is facing another round of layoffs. On Tuesday, the streaming giant said it let go of about 150 employees, most based in the US. This is the second set of layoffs for Netflix following its earnings report in April that showed it lost 200,000 subscribers, its first subscriber drop in a decade.
"Our slowing revenue growth means we are also having to slow our cost growth as a company," a Netflix spokesperson said in an emailed statement. "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."
In April, the streaming service laid off workers from its Tudum fan website, a Netflix companion site that launched in December.
In addition to the subscriber loss shown in its first-quarter earnings report, Netflix also expects to lose 2 million more subscribers in the three months from April to June. The company cited Russia's invasion of Ukraine and sanctions related to the war as factors impacting its number of subscribers.
Netflix also listed password sharing as an issue for its business, which is a reason the company is testing a way to charge fees for sharing an account.