Netflix cuts 150 jobs after subscriber slump, revenue slowdown

Netflix on Tuesday announced it was cutting 150 jobs amid a slowdown in revenue and a decline in subscribers that has shaken the entertainment industry and triggered a reexamination of the streaming business.

Most of the job losses are actually in the U.S. " As we explained on earnings, our slowing revenue growth means we are also having to slow our cost growth as a company," a Netflix spokesperson said.

"So, unfortunately, we are letting around 150 employees go today, primarily U.S.-based. These changes are mainly driven by business needs rather than individual performance, making them challenging as none of us want to say goodbye to such great colleagues.

We're working hard to support them through this challenging transition." The announcement comes after Netflix reported a loss of 200,000 subscribers in the first quarter for the first time in more than a decade.

The Los Gatos, Calif.-based streaming service expects to lose 2 million more subscribers this quarter. After its earnings report, its stock declined 35.1% to $226.19 on April 20, its most significant one-day drop since 2004.

Netflix is rethinking its business model, which long capitalized on providing an extensive library of commercial-free content for a premium price of $15.49 a month for a standard subscription.

Netflix had been ramping up its staff during the pandemic as consumers joined the streaming service in droves and sought to entertain themselves at home.

As of December, Netflix had about 11,300 full-time employees, and the cuts represent about 1% of its global workforce.

A little less than half of the staff is based in L.A. Departments affected by the layoffs include recruiting, communications, and the content side of the business.

More cuts could come to other teams later this year. Last month, the company laid off people in marketing-related jobs, including contractors who had been there less than a year.

"This felt more of a matter of when, than if," said a contractor who was part of a team that ran social media content promoting LGBTQ storytelling.

The contractor, who was not authorized to speak publicly, became aware of the layoffs first through the news and hours later attended an all-hands meeting where a group of people was informed they were losing their jobs.