We recently reported on the falling numbers of Netflix subscribers. It’s now emerging that the streaming company is laying off over 150 employees including contractors, following a drop in revenue. The employees affected include 26 contractors working on the company’s fun-oriented website, Tudum.
The employees, mostly US-based, were informed about the layoffs via a mass email sent on Tuesday. The company cited dwindling revenue as the core reason for its action.
Netflix spokesperson Erika Masonhall 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 US-based,”
Netflix is experiencing continued subscription cancellations, according to a recent survey. The survey shows 13% of the cancellations were by subscribers who have been with the service for more than three years. Those that have been with the service for less than a year accounted for 70% of cancellations.
There are several factors that are contributing to the company’s dwindling numbers. The suspension of its services in Russia in March cut off about one million subscribers in the country. There is also the rise in subscription fees which left Netflix as one of the most expensive options. Competition and a less-impressive library are also cited as contributors to the company’s diminishing fortunes.
Netflix projects that it will lose nearly two million subscribers in Q2 2022.
The company’s Chief Financial Officer Spencer Neumann said that Netflix will be cutting spending for the next two years.