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Netflix lays off workers and contractors amidst financial troubles

Netflix’s recent disappointing quarterly report is about to claim its casualties as the company is laying off workers and disengaging contractors.

Following a quarter when the world’s most popular video streaming platform lost subscribers for the first time, Netflix is set to let go of some employees and part ways with some contractors, as reported by Variety.

About 150 workers will be affected by the job cuts. The company informed The Verge that the bulk of the layoffs would affect the US. Company spokesperson, Erika Masonhall, wrote to The Verge:

“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. These changes are primarily driven by business needs rather than individual performance, which makes them especially tough as none of us want to say goodbye to such great colleagues. We’re working hard to support them through this very difficult transition. A number of agency contractors have also been impacted by the news announced this morning. We are grateful for their contributions to Netflix.”

About 26 contractors are getting the ax, and they work on Netflix’s Tudum website, which is a supplement to the company’s main website. Netflix had earlier eliminated 25 positions in marketing, with about 12 Tundun workers involved.

The Tundum workers that got laid off were informed of the loss of their jobs through a mass email sent by the staffing agency.

Netflix lost 200,000 users last quarter, which is actually small compared to its user base. However, other streaming platforms gained users in the same quarter. For example, Disney Plus gained 8 million followers in the same period.

More worryingly for Netflix, the company expects to report more losses of 2 million in this quarter due to its decision to pull out of Russia after it invaded Ukraine. Also, the platform has not had any blockbuster release this quarter.

The company’s chief financial officer had earlier said during the last earnings report that Netflix would slow down spending for the next couple of years.

Netflix plans to reverse the trend by cracking down on password sharing and creating an ad-supported tier that will make owning an account more affordable to more people.

Written by HackerVibes

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