Netflix is looking to cut costs to deal with slowing revenue growth. In this context, the company laid off approximately 150 employees.
Netflix announced that the company has laid off about 150 employees, most of them in the United States, to cut costs in slowing revenue growth. This is the second wave of layoffs at the company recently, but it is unknown how many workers were affected in the other attempt.
Last month, Netflix, which released this year’s first-quarter reports, said it had lost around 200,000 subscribers. The company, which is also facing a slowdown in the current quarter, will reduce its workforce to cut costs.
“As we explained in regards to revenue, the slowdown in revenue growth means that as a company we also have to slow down the growth of costs. Unfortunately, we are hiring about 150 employees in the United States, most of them. These changes are driven by business needs rather than individual accomplishments, which makes saying goodbye especially difficult because none of us want to say goodbye to such wonderful colleagues. We are working hard to support them in this very difficult transition.”
They were dismissed. The recent layoffs represent about 2% of Netflix’s workforce in the United States and Canada. It is not yet known whether the company will lay off other employees in the near future. Netflix CFO Spencer Neumann reiterated his intention to maintain an operating margin of around 20% for the full year 2022.