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Business

The technology company in the SF Bay Area is laying off 150 employees




Netflix is ​​laying off 150 employees and dozens of entrepreneurs as they try 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, which makes them particularly tough since none of us want to say goodbye to such good colleagues,” Netflix said in a statement to SFGATE. “We are working hard to support them through this very difficult transition.”

The power giant is renewing its animation division and 70 roles will be eliminated in that unit alone, Variety reported.


The vacancies represent less than 2% of the power giants 11,000 employees, and most of the cuts are in the United States, several media 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 wins over linear, as we predicted, and Netflix titles are very popular globally. However, our relatively high household penetration – when we include the large number of households sharing accounts – combined with competition, revenue growth is headwinds.”

Netflix said in the letter that growth slowed due to competition from other streaming services, such as Amazon and Hulu, and subscribers who share passwords with people who do not pay for the service.

Netflix told employees earlier this month that it plans to bring back subscribers with a less expensive level of ad support that may be available as early as the end of this year, the New York Times reported.

Netflix did not immediately respond to a request for comment.



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