San Francisco Bay Area tech firm lays off 150 employees

Netflix is ​​laying off 150 employees and dozens of contractors in a bid to cut costs after the latest earnings report showed slow revenue growth, the company said.

“These changes are primarily driven by business needs rather than individual performance, making them especially difficult as none of us want to say goodbye to such great colleagues,” Netflix said in a statement to SFGATE. “We are working hard to support them during this very difficult transition.”

The streaming giant is revamping its animation division with 70 roles being cut in that unit alone, Variety reported.

The terminated positions represent less than 2% of the 11,000 employees of the streaming giants and most of the cuts are taking place in the US, several media outlets reported.

This news comes after the Los Gatos-based company reported that it lost more than 200,000 paid subscribers in the first quarter of 2022, marking the first time Netflix has lost customers in over a decade.

“Our revenue growth has slowed considerably,” the company said in its letter to shareholders. “Streaming is becoming linear, as we predicted, and Netflix titles are very popular around the world. However, our relatively high penetration of households, when you include the large number of households that share accounts, combined with competition creates difficulties for revenue growth”.

Netflix said in the letter that growth has slowed due to competition from other streaming services, such as Amazon and Hulu, and subscribers sharing passwords with people who don’t pay for the service.

Netflix told employees earlier this month that it plans to bring subscribers back with a lower-cost tier of advertising that could be available later this year, the New York Times reported.

Netflix did not immediately respond to a request for comment.

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