150 Netflix Workers Sacked Over Slowing Revenue
150 Netflix workers, representing two percent of its workforce, have been sacked.
This action was due to the dwindling revenue and subscriber base.
The sacked staff were from different departments of the company.
Netflix, the popular video streaming company, recently laid off 150 of its employees due to dwindling revenue and subscriber base. This happened less than a month after it disengaged about 10 full-time staff and contractors from the marketing and editorial departments.
The 150 Netflix workers disengaged represent two percent of its workforce, mostly in the U.S. Also, the video streaming company eliminated about 70 roles from its animation department and roles from social media and publishing contractors.
This report was based on an internal memo that was sent yesterday, Tuesday, May 17, 2022. Meanwhile, these laid-off employees will be receiving severance packages, which will begin with four months of coverage.
Netflix made a statement on this issue, saying that the mass firing was due to its earnings and dwindling revenue growth. The company claims that it was forced to reduce its growth cost. Unfortunately, it had to let go of 150 employees.
Netflix claims that the recent changes were motivated by business needs instead of individual performances, which makes it very difficult for them to say goodbye to such amazing workers.
The company also promised that it is working tirelessly to support the laid-off employees through this challenging period.
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Netflix’s April Q1 earnings report showed that the embattled streaming subscription had lost about 200,000 subscribers during the first quarter, and an additional 2 million subscribers are expected to drop in the second quarter.
To cushion the impact, Netflix will introduce an ad-supported subscription option and cut down on spending.