Netflix is laying off around 150 employees – 2 percent of its entire workforce – with the majority of them occurring in the United States.
The streamer is also restructuring its animation section, which will result in the removal of 70 jobs, as well as cutting contractor positions across its social media and publishing platforms.
The latest cuts come less than a month after Netflix’s editorial and marketing division laid off a number of full-time employees and contractors.
A Netflix spokesperson stated: “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.
“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.”
Employees affected are likely to get severance payouts beginning at four months, however, this time period may be extended based on the employee’s position and length of service with the organization.
During its first-quarter results report in April, Netflix disclosed that it had lost 200,000 members in the period and planned to lose another 2 million in the second.
As a result of the weak growth, Netflix plans to create a lower-cost, ad-supported tier and will start “pulling back” on spending to protect profits, while the streamer is still anticipated to spend $17 billion on content.
Netflix’s long-held trust with certain employees has been shattered following the company’s dismal quarterly report and consequent stock decline.
Source: The Hollywood Reporter