150 employees were laid off by the streaming service today. The most recent round of layoffs was reported by Deadline. It comes after weeks of tumult and follows layoffs from Tudum.
In an email to Gizmodo, a person from the company wrote the following.
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.
In its first quarterly earnings report in 2022, the company revealed that it had lost 200,000 subscribers. It was the first drop in a decade for the company. The streaming platform's stock plummeted after the earnings report.
The company blamed its losses on a number of factors, including their ban of Russian users, unauthorized password sharing, and high household penetration. Password sharing and subscriber dips are only part of the story. Debt and a flawed business model seem to have taken a toll.
Following the publication of the story, a representative of the company reached out to assure the public that the company is now cash positive.
In a public attempt to shore up revenue, and probably calm investors, Netflix is exploring ways to limit password sharing. The company wants to add a paid tier that includes ads within the year. Adding live streaming to certain shows and events is something the platform is exploring. If any of these efforts pay off, the 150 employees let go on Tuesday will be around to benefit.
There was an update at 6:08 p.m. This post has been updated with more information from the company.
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