Netflix lays off 150 employees, including executives: report
Netflix launched a wave of layoffs today, with around 150 of its 11,000 employees laid off as the company reels from disappointing financial results in the first quarter of the year – reports Deadline.
The news comes just days after the streamer updated its corporate culture guidelines, encouraging employees who disagree with its content to quit. It looks like Netflix has now decided to start showing people the door on its own.
“As we explained on earnings, our slowing revenue growth means we also have to slow our cost growth as a business. in the United States,” a Netflix spokesperson said. Deadline.
“These changes are primarily driven by business needs rather than individual performance, which makes them particularly challenging as none of us want to say goodbye to such great colleagues. We are working hard to support them in this very difficult transition.
According to sources, a significant percentage of those laid off were from Netflix’s creative department, both in film and television, and several were even part of the executive management.
Rumors suggest Sebastian Gibbs and Penelope Essoyan from Drama Series, Negin Salmasi from Spectacle and Event TV, as well as Nathan Kitada, Fidan Manashirova, Naketha Mattocks, Brad Butler and Caroline Mak are all leaving the company.
A downsizing has been expected at Netflix since the company reported slowing revenue growth and its first drop in subscriber numbers in more than a decade during the first quarter. The company’s global subscriber base lost 200,000 users in the quarter, and it expects to lose another 2 million subscribers in the second quarter.
News of Netflix’s first quarter results sent shares tumbling 25%, and the stock price has been on a downward trend ever since.
Gone are the days of extravagant budgets and spending sprees at Netflix. The streamer will have to start pinching some pennies if he wants to regain his footing in the industry. Netflix said last month that it plans to impose more financial discipline on its operations and focus on content quality rather than quantity.
The company is preparing to introduce a new ad-supported subscription tier with a lower price later this year, and live streaming is also in the works behind the scenes.