Netflix has laid off around 150 employees, or about 2% of its total workforce, primarily due to budget cuts and "business needs."
In an internal email sent to staff viewed by IGN, Netflix Global Head of HR Sergio Ezama informed employees today about the layoffs, writing, “These changes are especially tough as they are primarily driven by business needs, not individual performance, and no one wants to lose great colleagues.”
Furthermore, the email says that as Netflix continues to prioritize its biggest opportunities, like non-English content, and amid further budget constraints due to slowing revenue, employees should “sadly expect some more departures in the coming months.”
A Netflix spokesperson told IGN, "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.
After years of dominating the streaming industry in Hollywood, Netflix is on the defensive after announcing its biggest subscription loss earlier this year. During a financial briefing, Netflix announced it was down 200,000 subscribers compared to the previous quarter, and the company expects to lose another 2 million subscribers in the coming quarter.
News of Netflix's subscriber woes recently caused its shares to plummet to its lowest point since 2018.
Since then, Netflix has cut back on its programming slate, including slashing its animation projects — which Ezama confirmed in the employee email — and laying off most of its in-house editorial team, Tudum.
Netflix plans to explore alternative strategies to grow including a new focus on mobile games, cracking down on password sharing, introducing a cheaper ad-supported tier, and potentially offering live streaming. But with the latest round of layoffs, and knowing there could be even more in the future, Netflix is no longer in the position of strength it once was.
Matt T.M. Kim is IGN's News Editor. You can reach him @lawoftd.
Additional reporting by Kat Bailey, IGN's Senior Editor. You can reach her @The_Katbot
Continue reading...
In an internal email sent to staff viewed by IGN, Netflix Global Head of HR Sergio Ezama informed employees today about the layoffs, writing, “These changes are especially tough as they are primarily driven by business needs, not individual performance, and no one wants to lose great colleagues.”
Furthermore, the email says that as Netflix continues to prioritize its biggest opportunities, like non-English content, and amid further budget constraints due to slowing revenue, employees should “sadly expect some more departures in the coming months.”
A Netflix spokesperson told IGN, "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.
After years of dominating the streaming industry in Hollywood, Netflix is on the defensive after announcing its biggest subscription loss earlier this year. During a financial briefing, Netflix announced it was down 200,000 subscribers compared to the previous quarter, and the company expects to lose another 2 million subscribers in the coming quarter.
News of Netflix's subscriber woes recently caused its shares to plummet to its lowest point since 2018.
Since then, Netflix has cut back on its programming slate, including slashing its animation projects — which Ezama confirmed in the employee email — and laying off most of its in-house editorial team, Tudum.
Netflix plans to explore alternative strategies to grow including a new focus on mobile games, cracking down on password sharing, introducing a cheaper ad-supported tier, and potentially offering live streaming. But with the latest round of layoffs, and knowing there could be even more in the future, Netflix is no longer in the position of strength it once was.
Matt T.M. Kim is IGN's News Editor. You can reach him @lawoftd.
Additional reporting by Kat Bailey, IGN's Senior Editor. You can reach her @The_Katbot
Continue reading...