Netflix is laying off about 150 employees after the streaming giant posted its first loss in subscribers since 2011.
The job cuts were outlined in an internal memo obtained by The Hollywood Reporter, which first reported the news.
A Netflix spokesperson confirmed the cut on Tuesday, saying: “As we report on earnings, our slow revenue growth means we will also have to slow our cost growth as a company. So sadly we are laying off about 150 employees today, most of them based in the US.
The layoffs represent about 2% of the streaming giant’s total workforce.
“These changes are driven primarily by business needs rather than personal performance, which makes them especially difficult because none of us want to say goodbye to such great collaborators. We’re going through this very difficult transition,” said a Netflix representative. Working hard to support them through
News of the cuts follows a string of layoffs at Netflix’s Tudum division, which launched in December.
Tudum for the sound that came with the Netflix logo when customers opened the streaming site, a division that focused on news and stories related to the service’s most popular shows and movies.
At the time, sources told The Post that another wave of layoffs was imminent. He pointed to the company’s recent disappointing financial report, in which it said it lost 200,000 customers in the first quarter.
The streamer, which is home to hit shows like “Inventing Anna,” “Squid Game” and “Bridgeton,” also said it expects to lose another 2 million in the second quarter. Netflix currently has 221.6 million subscribers, which is still more than the competition.
To stop the bleeding, Netflix co-CEOs Reed Hastings and Ted Sarandos said the company will likely crack down on password sharing.
The CEO wants to launch a lower-priced ad-supported tier by the end of the year, with a much quicker timeline than originally envisioned, in an effort to pump in revenue and customers.
The Los Gatos, California-based streaming giant currently offers several payment tiers, including its most popular plan, which costs $15.49 per month. The price of the cheaper ad-supported tier has not been announced.
Other streaming providers have similar plans and ad-supported offers. For example, HBO Max offers an ad-free service for $15 per month, and it charges $10 per month for service with ads.