June 21, 2024

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SF Bay Area Tech is laying off 150 employees

SF Bay Area Tech is laying off 150 employees

Netflix is ​​laying off 150 employees and dozens of contractors in a bid to cut costs after its latest earnings report showed a slowdown in revenue growth, diverse first mentioned.

“These changes are primarily driven by business needs rather than individual performance, which makes them particularly challenging as none of us want to say goodbye to such wonderful colleagues,” Netflix said in a statement to Variety. “We are working hard to support them during this very difficult transition.”

The broadcast giant is revamping its animation department and 70 roles in that unit alone are cancelled. The Hollywood Reporter She said.

Many media outlets have reported that job cuts represent less than 2% of the broadcasting giants’ 11,000 employees, and most of the cuts are taking place in the United States.

The news comes after the Los Gatos-based company reported that it lost more than 200,000 paid subscribers in the first quarter of 2022, the first time Netflix has lost customers in more than a decade.

“Our revenue growth has slowed significantly,” the company said in a report. Message to shareholders. “Live streaming is linear profit, as we expected, and Netflix titles are very popular globally. However, our relatively high penetration of homes – when including the large number of households sharing accounts – combined with competition, creates headwinds for revenue growth. “

Netflix said in letter This growth has been slowed by competition from other streaming services, such as Amazon and Hulu, and subscribers sharing passwords with people who don’t pay for the service.

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Netflix told employees earlier this month that it plans to bring back subscribers with a low-cost, ad-supported tier that could be available as early as the end of this year, The New York Times mentioned.

Netflix did not immediately respond to a request for comment.