After losing 200,000 subscribers during the first quarter (and an estimate of two million in the next quarter), Netflix knows that it is facing a challenge that could affect its operations. Then, the inevitable happened with the company laying off roughly 150 employees based in the US due to the slow down of its revenue growth. A representative from the company confirmed it through an email to Techcrunch on Wednesday.
“As we explained on earnings, our slowing revenue growth means we are also having to slow our cost growth as a company,” the statement reads. “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.”
As shared by Deadline, some of the notable employees that were let go by the company include those in the creative department. In particular, even the directors of its original content series are affected, like Sebastian Gibbs and Negin Salmasi.
It is no secret that Netflix is facing a huge dilemma in growing the number of its subscribers. In its recent quarter letter to shareholders, the company admitted that one of the reasons behind this is the widespread password sharing among users even outside a particular household. Then, there is the competition with other subscription streaming services, suspension of its service in Russia, and more. Its team of analysts forecasted $7.93 billion, but the company instead got $7.87 billion for the first quarter of the year and the news of losing the 200 thousand subscribers. With this, the layoff was somehow expected weeks ago.