Video streaming company, Netflix has laid off 150 of its employees as its subscriber base and revenue slows down. This is coming less than a month after it disengaged at least 10 full-time staff and contractors in its editorial and marketing divisions.
The sacked workers represent two percent of its workforce, largely in the U.S. The company is also eliminating 70 roles from its animation unit, as well as roles for social media and publishing contractors. The cuts were revealed in an internal memo sent Tuesday and obtained by The Hollywood Reporter.
These layoffs employees being let go are expected to receive severance packages, starting at four months’ coverage.
What the company is saying
Netflix in a statement 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 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.”
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In the company’s April Q1 earnings report, it came to light that the embattled streaming champ had lost 200,000 subscribers in the first quarter and expected an additional 2 million to drop off in the second. To cushion the impact, Netflix will introduce an ad-supported subscription option and cut down on spending.