Netflix on Tuesday announced laying off around 150 employees and slashing ties with contractors, mostly in the US, citing slow revenue growth. About 2 per cent of the company's workforce in the US and Canada will be affected, Reuters reported.
As per a The Verge report, the move would impact at least 26 contractors working on the Tudum website, which serves as a supplement to Netflix’s content.
Netflix spokesperson Erika Masonhall told The Verge that the layoffs were mainly driven by financial issues rather than the performance of employees.
“Our slowing revenue growth means we are also having to slow our cost growth as a company. A number of agency contractors have also been impacted by the news announced this morning. We are grateful for their contributions to Netflix,” Masonhall said in a statement issued to The Verge.
According to an earlier report by Variety, Netflix laid off about 25 employees in its marketing team last month.
The job cuts come after Netflix reported a loss of 200,000 subscribers in the last quarter. The company is estimated to lose an additional 2 million in the next quarter. As per The Verge report, Spencer Neumann, Chief Financial Officer of Netflix, said at the earnings call that the company is pulling back on spending for the next two years or so. Netflix informed its employees about the launch of a low-budget ad-supported plan later this year and a crackdown on password sharing to regain subscriber growth.