American streaming giant Netflix, which is already in trouble with its investors over the loss of subscribers, is laying off nearly 150 employees along with dozens of contractors. The move is being taken after a disappointing earnings report due to slow revenue growth. People familiar with the situation have informed that the job cuts includes at least 26 contractors, who work on the company’s fan-focused website Tudum. The website works as a supplement to the content of Netflix.
This is not the first time Netflix has cut jobs. Before the recent round, the company has already cut nearly 25 roles in the marketing segment and also a dozen of people who were working on Tudum. The 26 employees who have been laid off recently were informed in a mass email sent out. Netflix spokesperson Erika Masonhall informed that the emails were sent by the contracting company. The streaming company while talking to a leading daily said that majority of the employees who were laid off are located in the United States.
Masanhall while talking about the layoffs said that majority of them were done due to financial issues and was not driven by the employees’ performance. It was in the previous quarter Netflix revealed that it lost around 200,000 subscribers and it marked the first time the OTT platform lost so many subscribers in a decade.
The company has also warned that more subscribers could be lost in the upcoming quarter. The Russian unprovoked invasion was partially blamed for the subscriber loss. The company has shut down its services in the country. Netflix saw a tough quarter with just a few Hollywood hits released on the platform. Experts have also blamed the condition of the OTT platform on the competition from other giants who are also providing promising content for the audience. Netflix has assured that it will soon come up with a cheaper and ad-supported option later in 2022.
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