May 17, 2022, 03:28pm
About 150 employees were laid off Tuesday, mostly in the United States, after the streaming service reported a decrease in subscriber numbers for the first time in 10 years.
There is a logo displayed at the Los Angeles headquarters of Netflix.
The reason for the layoffs was slow revenue growth and business needs, not individual performance, according to a spokesman for the company.
The company intends to support them through this very difficult transition, and none of us want to say goodbye to such great colleagues.
Over 11,000. That's how many people work for the company.
The company lost 200,000 subscribers in the first quarter, which was much worse than expected. The company expects to lose 2 million subscribers this quarter. After the news broke, the stock price of the company plummeted and was trading at $189 Tuesday afternoon. 30 million of the 100 million households around the world that share passwords are in the U.S. or Canada. Reed Hastings said that 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. The company told employees in a note that the ad-supported tier could launch in the fourth quarter. Variety reports that 25 employees from the marketing team were laid off after the news of the losses broke.
The first time in ten years that there has been a loss of subscribers.
A survey suggests that 1 in 10 adults use a password from another household.
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