Image Source: Nairametrics
Netflix has cut off approximately 150 employees, just a month after revealing that it is losing subscribers for the first time in ten years.
The layoffs, which were disclosed by the streaming service on Tuesday, would mostly affect its California office. They make up around 2% of its North American workforce.
Netflix blamed the layoffs on a drop in income.
This year, the streaming service is fighting a viewer exodus.
“These changes are mostly driven by business needs rather than individual performance,” the company said in a statement.
The Los Angeles Times claimed that recruiting, communications, and the content department were all affected.
In April, the streaming behemoth surprised the industry by revealing it had lost 200,000 customers in the first three months of 2022, with another two million on the way.
The announcement caused a sell-off among investors, with the firm’s stock dropping 35% in one day. It is now trading at $190 (£152), down 46% from its previous high.
While Netflix continues to be the obvious market leader with 220 million users worldwide, it has experienced severe competition in recent years with the emergence of alternative services such as Disney Plus, HBO, and Amazon’s Prime Video.
Last month, the corporation warned that the situation in Ukraine and its decision to raise pricing in the United States had cost its subscribers.
Read Also: Netflix gives ‘woke’ employees ultimatum
It was claimed that the business had lost 700,000 customers due to its exit from the Russian market.
Along with employee cuts, the corporation is also reducing content and limiting its own productions. It terminated the creation of Pearl, an animated series produced by Meghan Markle, in May to save money.
According to some analysts, Netflix has run out of straightforward methods to build the business following a boom in sign-ups during the pandemic.
The company says it’s considering a less expensive ad-based approach and will crack down on password sharing, which it claims has cost them 100 million homes.