Netflix hit by layoffs; About 150 mostly US-based employees affected

Exclusive: licensed today on Netflix. About 150 positions of Streamer’s 11,000 employees are vacant due to a slowdown in the company’s revenue growth.

They are primarily based in the United States, a significant portion of creativity in both film and television, the sources said. The number of those fired is in the executive ranks, including original content, I understand that the rumors about director-level executives of various original series have disappeared. There are also rumors that the independent film department will make a huge sacrifice, but insiders say that’s not the case.

“As we explained in earnings, slowing revenue growth means we also need to slow down cost growth as a company. “So, unfortunately, we’re letting about 150 people go to work today, most of them in the US,” a Netflix spokesperson told Deadline. “These changes are driven primarily by business needs rather than individual performance, which makes them particularly difficult because none of us want to say goodbye to such great colleagues. “We are working to support them in this very difficult time of transition”.

To update: Netflix does not comment on layoffs. The rumors pass, some of the names I hear at the executive level remain on television and in the cinema: Sebastian Gibbs and Penelope Esoyan in the drama series, Negin Salmas in the theater and Event TV, as well as Nathan Kitada, Fidan Manashirova, Naketa Metox, Brad Butler. and Caroline Mack.

Today’s outage follows the layoffs of editors and contractors a few weeks ago at Tudum, a Netflix fansite dedicated to behind-the-scenes news related to the streaming giant’s content.

Staff reductions are foreseen. Shares of Netflix fell sharply after Streamer announced last month that its global subscriber base shrank by 200,000 in the first quarter since the company closed 2021, the first decline in more than a decade.

Street also expected more in terms of revenue from the streaming giant, with analysts asking for $ 1.93 billion. Netflix posted revenue of $ 7.868 billion in the first quarter, down 10% from the previous year.

“Our revenue growth has slowed significantly, as our results and forecasts below show,” the company said in a quarterly letter to shareholders. “Streaming is straightforward, as we expected, and Netflix titles are hugely popular around the world. However, our relatively high household penetration, when it includes a large number of shared family accounts, in the face of competition creates resistance to revenue growth.

Speaking of Netflix’s revenue, Netflix CFO Spencer Neumann discussed cost-cutting measures in the coming months.

“განმავლობაში For the next 18 to 24 months, let’s call it the next 2 years, we will be working on this operating margin, which means we are reversing our cost growth on both content and content. “Costs not contained, but our costs continue to rise and we are still making aggressive investments in these long-term opportunities,” she said. “We try to be smart and cautious in terms of increasing these costs to reflect the reality of corporate revenue growth.”