Netflix announces it is cutting 150 jobs – including top original content executives – amid a slowdown in revenue and loss of 200,000 subscribers
Netflix says it’s cutting about 150 jobs after announcing that it’s lost 200,000 subscribers since the end of last year.
Most of the employees being laid off are based in the US and work in creative positions across film and TV.
The California-based streaming service is even eliminating some executive positions in its original content departments, sources told Deadline. A few director-level executives may also be on their way out.
The news comes a month after the company reported that its global subscriber base declined in the first quarter of 2022.
On top of that, the streamer failed to meet revenue expectations by $62 million. Share prices are down 43.6 percent from last month.
Last month, the company identified four key issues that were costing it subscribers: increasing competition, slowing smart TV adoption, password sharing, and ‘macroeconomic developments,’ such as the ongoing COVID-19 pandemic, inflation and Russia’s invasion of Ukraine.
Netflix is cutting 150 of its 11,000 jobs on Tuesday. Above, the company’s headquarters on Sunset Boulevard in Hollywood
Share prices are down by 43.6 percent from last month after the company announced it lost subscribers and failed to meet revenue expectations
The 150 layoffs have been expected as Netflix struggles to attract new subscribers.
‘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 told Deadline.
‘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 its quarterly letter to shareholders, the company said: ‘Our revenue growth has slowed considerably as our results and forecast below show.
In an earnings call, CFO Spencer Neumann said the company plans to pull back some of its planned spending for the ‘next two years.
‘Streaming is winning over linear, as we predicted, and Netflix titles are very popular globally. However, our relatively high household penetration – when including the large number of households sharing accounts – combined with competition, is creating revenue growth headwinds.’
In an earnings call, CFO Spencer Neumann said the company plans to pull back some of its planned spending for the ‘next two years.’
‘We’re kind of operating to roughly that operating margin, which does mean that we’re pulling back on some of our spend growth across both content and noncontent spend, but still growing our spend and still investing aggressively into that long-term opportunity,’ he said, according to Deadline.
In a letter to shareholders dated April 19, the company admitted