Only a month after disclosing that it had lost customers for the first time in a decade, Netflix has laid off approximately 150 people.
The layoffs were disclosed by the streaming service on Tuesday, affecting mostly its California operation. They account for around 2% of the company’s North American workforce.
Netflix attributed the job reduction to a decrease in revenue.
This year, viewers are leaving the streaming service in droves.
The corporation noted in a statement that “these adjustments are generally motivated by business needs rather than individual performance.” “This makes it much tougher because none of us wants to leave such wonderful coworkers.”
Although it was not mentioned which departments would be affected, the Los Angeles Times reported that recruiting, communications, and the content department would all be affected.
Some people also used social media to vent about their job losses.
The streaming powerhouse startled the industry in April when it announced that it had lost 200,000 users in the first three months of 2022, with another two million expected to leave in the following quarter.
Investors reacted negatively to the news, with the company’s shares plunging 35 per cent in one day. It is now valued at $190 (£152), down 46% from its recent peak.
While Netflix remains the clear market leader with 220 million subscribers globally, the arrival of alternative services such as Disney Plus, HBO, and Amazon’s Prime Video has increased competition in recent years.
The company revealed last month that the situation in Ukraine and its decision to hike prices in the United States had cost its customers money.
According to reports, quitting the Russian market cost the company 700,000 users.
According to several analysts, after a surge in sign-ups during the pandemic, Netflix has run out of simple ways to grow the business.
According to the corporation, it is investigating a more cost-effective ad-based method as well as cracking down on password sharing, which it claims has lost them 100 million homes.