Video streaming giant Netflix has been laying off employees, this development comes after the company reported its first-ever subscriber loss in a decade. According to several media reports, close to 150 employees have been laid off by Netflix so far.
It is important to note that the loss of subscribers in Quarter 1 of 2022 had also led to a sharp fall in its share prices.
“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,” the company told international media.
Netflix had earlier said that this loss of two lakh subscribers doesn’t include the subscriber base from Russia, where the platform has stopped streaming amid the Ukraine-Russia war. Otherwise, the subscribers' loss would have crossed 7,00,000.
The company had earlier also projected an additional decline of 2 million subscribers in the current second quarter of 2022.
Netflix has attributed password sharing among family and friends as one of the main reasons behind the fall in the number of subscribers. In December 2021, Netflix reported it had 221.84 million subscribers, which fell to 221.64 million subscribers between January-March 2022.
Further, Netflix had announced that it will be rolling out cheaper, ad-supported models to consumers over the period of two years.