Netflix has laid off around 150 employees. According to the company, this represents 2% of its total global workforce. Netflix provided a statement on the recent lay offs, citing slow revenue growth and a drop in subscribers as the primary reason behind its decision to slash a percentage of employees, most of which reside in the US.
The Hollywood Reporter recently reported the news, confirming that Netflix will lay off around 150 employees presumably following the drop in overall subscribers for the streaming service. Deadline reports that further internal restructuring is currently taking place, with the animation division removing about 70 employees. The company’s indie film division will also reportedly “suffer heavy casualties.”
A Netflix spokesperson provided a statement on the matter:
“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.”
Netflix’s bizarre new business decisions didn’t help its case either. In April, the company announced plans to introduce an ad-based model in order to grow its subscriber base again and generate more money. This didn’t sit well with most subscribers who committed to the streaming service in the first place because it promised ad-free television viewing.
Netflix continues to bank hard on upcoming shows including its golden child, Stranger Things, which will debut its fourth season later this month. Other major projects in the works at Netflix includes a live-action series adaptation of the popular manga One Piece, a BioShock movie and a new Resident Evil series, among others.
Source: The Hollywood Reporter