Netflix layoffs

2022 - 5 - 17

Post cover — Image courtesy of "Deadline"

Netflix Hit By Layoffs; About 150 Mostly U.S.-Based Employees ... (Deadline)

Layoffs are underway at Netflix. About 150 positions of the streamer's workforce of 11000 are being eliminated amid a slowdown in revenue growth.

“…presumably, for the next 18, 24 months, call it the next 2 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. “As we explained on earnings, our slowing revenue growth means we are also having to slow our cost growth as a company. However, our relatively high household penetration – when including the large number of households sharing accounts – combined with competition, is creating revenue growth headwinds.” The Street also had expected more from the streaming giant in term of revenue, with a consensus among analysts calling for $7.93 billion. A number of those laid off are in the executive ranks, including in original content, I hear, with a couple of director-level original series execs rumored to be leaving. EXCLUSIVE: Layoffs are underway at Netflix today.

Netflix lays off 150 employees amid subscriber decline (NPR)

The layoffs are the latest signal of a major shift within the streaming giant as it recently reported a decline in subscribers for the first time in a ...

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Roughly 150 Netflix Employees Laid Off After Subscriber Losses (Forbes)

The layoffs come after the streaming service lost subscribers last month for the first time in a decade.

The ad-supported tier could launch in the fourth quarter of this year, the company told employees in a note, which was reported on by the New York Times last week. The losses were partially blamed on password sharing—Netflix believes 100 million households around the world share passwords, 30 million of which are in the U.S. or Canada. Netflix co-CEO Reed Hastings said the streaming service would explore launching a lower-priced, ad-supported tier to attract customers and a program that would allow users to pay for additional profiles they can share, similar to a test program that was launched in Chile, Costa and Peru earlier this year. Netflix reported a loss of 200,000 subscribers in the first quarter, a stark turnaround from expectations to add 2.7 million.

Netflix Lays Off 150 Employees as It Struggles With Subscriptions (The New York Times)

Our slowing revenue growth means we are also having to slow our cost growth as a company,” the company said in a statement.

At the same time, the company plans to crack down on password sharing, a practice Netflix believes has cost the company revenue from some 100 million unauthorized users, who are watching the service and not paying for it. The news sent shock waves through the entertainment industry, in which many companies have bet their futures on the continued growth of streaming. “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.”

Netflix lays off 150 staffers amid slowdown in revenue growth (fox5sandiego.com)

Streaming service platform Netflix has laid off up to 150 employees as it continues to see a downturn in revenue and subscriber growth.

Netflix lays off estimated 150 staffers in latest round of cuts (New York Post)

Netflix is laying off roughly 150 employees weeks after the streaming giant posted its first loss in subscribers since 2011.

The Los Gatos, Calif.-based streaming giant currently offers a host of payment tiers, including its most popular plan, which costs $15.49 a month. Netflix currently has 221.6 million subscribers, which is still more than the competition. At the time, sources told The Post that another wave of layoffs was imminent.

Netflix Layoffs Continue Amid Ongoing Corporate Chaos (Gizmodo)

The streaming service laid off 150 employees today.

In a public attempt to shore up revenue (and probably calm investors), Netflix is exploring ways to limit password sharing. The company is also looking to add a paid subscription tier that includes ads within the year. Historic debt and a flawed business model seem to have also taken a toll. As we explained on earnings, our slowing revenue growth means we are also having to slow our cost growth as a company. That number drop was the first in a decade for the company. Netflix is having a hard time right now.