Netflix has laid off 150 of its employees, mostly in the US, according to an internal memo sent on Tuesday.
The streamer also laid off its Tudum editorial employees only weeks ago. The 150 employees who were let go last night represents approximately 2 percent of the company’s workforce. 70 people were axed from the animation department.
“As we explained on earnings, our slowing revenue growth means we are also having to slow our cost growth as a company,” a Netflix spokesperson told press. “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.”
In April, Netflix reported having lost subscribers for the first time and the company is also expected to introduce a cheaper fee tier that includes ads in order to combat the revenue loss. Clearly, the company is having to tighten the purse strings all around in order to keep their business profitable.
Last week was the most difficult week of my life. Just when I thought I was out of the woods, I was laid off by Netflix today, along with dozens of the most talented people I’ve ever met. Please consider me for your freelance assignments. Thank you all in advance for your love
— Tess Garcia (@HiThisIsTess) May 17, 2022
Employees are expected to receive a four months severance package to help them through the transition. While the layoffs were probably expected after the troubling news of the company’s revenue loss, it seems that the news came as a surprise to the staff that were let go. Many have now posted the news on Twitter, speaking of the shock and anger whilst also looking for work.
It remains to be seen if Netflix can crawl back up to the top of the streamer game. Disney+ seems to reign supreme with its original content, especially its Marvel and Star Wars TV shows.
