A month after reporting its first drop in subscriptions for more than a decade, Netflix has laid off about 150 employees, most of them from the global streaming giant’s US operation.
The move, which reportedly has affected executives and other workers on the content side of the company, represents a cut of around 2% to the company’s total workforce of 11,000 people.
The move comes after Netflix announced financial results for the first quarter of 2022 that led to a steep drop-off in the company’s share price and a reassessment of the strength of the subscription streaming business.
In a letter to shareholders and an earnings call, Netflix said factors including slow broadband adoption and password sharing were creating “revenue growth headwinds.”
In a statement confirming this week’s layoffs a Netflix spokesperson said: “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.”
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