Most affected employees are located in the US
Netflix is laying off around 150 employees as well as dozens of contractors following a disappointing earnings report, citing “slowing revenue growth,” as first reported by Variety.
A source familiar with the situation tells The Kupon4U the cuts include at least 26 contractors working on the company’s fan-focused Tudum website, which serves as a supplement to Netflix’s content. Prior to this recent round of layoffs, Netflix cut around 25 marketing roles, including close to a dozen who worked on Tudum. The 26 workers laid off today were informed of the move in a mass email, which Netflix spokesperson Erika Masonhall said was sent by the contracting company.
The streaming giant told The Kupon4U that most employees affected by the layoffs are located in the US. Masonhall issued the following statement in response to The Kupon4U’s request for comment, noting that the layoffs were mainly driven by financial issues, rather than performance:
Last quarter, Netflix reported losing around 200,000 subscribers — the first time Netflix has lost subscribers in over a decade. It also expects to lose an additional 2 million in the next quarter. Russia’s invasion of Ukraine is partially to blame for the loss in subscribers, as Netflix shut down its services in Russia in March. Netflix had a low-key quarter with fewer huge Hollywood hits released on the platform, which didn’t help either.
Spencer Neumann, Netflix’s chief financial officer, said during last quarter’s earnings call that the company will be pulling back on spending for the next two years or so.
The streaming giant has told employees a cheaper, ad-supported option will launch later this year as well as a crackdown on password sharing as it attempts to reignite subscriber growth.
Disclosure: The Kupon4U is currently producing a series with Netflix.
Additional reporting by Mia Sato.
Correction May 17th, 6:40PM ET: The Tudum workers who lost their jobs were contractors, not Netflix employees, as this story originally stated.
