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Fresh Netflix Layoffs Hit as Company Struggles to Regain Footing

Latest job cuts follow disappointing financial results and subscriber losses.

Netflix has moved to lay off about 150 employees as the streaming giant continues to  confront a significant post-pandemic hangover. 

The cuts come as Netflix  (NFLX) - Get Netflix Inc. Report announced in an earnings call last month that it lost 200,000 global subscribers in the first quarter of the year, and that it will lose another 2 million global net paid additions over the three months ending in June, it’s first major drop in more than a decade.  

As a result, it missed the $7.93 billion in revenue originally projected by analysts. The company’s stock price has been trading at its lowest levels since 2018.

Netflix business and shares had surged during the pandemic as people who were forced to stay at home for extended periods signed up for the streaming service in droves.

In an internal email sent to staff that was viewed by IGN, Netflix Global Head of HR Sergio Ezama confirmed the layoffs.

“As we explained on earnings, our slowing revenue growth means we are also having to slow our cost growth as a company. So sadly, we are letting around 150 employees go today, mostly US-based."

“These changes are primarily driven by business needs rather than individual performance, which makes them especially tough as none of us want to say goodbye to such great colleagues. We’re working hard to support them through this very difficult transition.” 

Netflix recently shuttered its editorial vertical Tudum and laid off 70 employees at its animation division. 

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At the time of its last annual report, Netflix said it had about 11,300 employees worldwide.

Massive Cuts To Film And Television Divisions 

Netflix isn’t commenting on who was laid off, but Deadline has reported that executive-level employees at its Drama Series, Spectacle and Event TV, and Comedy Series Divisions were affected.

It’s unclear how this will affect production, though the likely outcome will be less original television shows and movies in the neat future.

8. Netflix (NFLX)

Netflix Is Trying To Turn Things Around

Netflix reportedly sent a company memo urging employees to “spend our members’ money wisely,” indicating a cutback in content spending for a company, which spent $17 billion on content last year and it known for lavish, attention-grabbing deals… as well as a scattershot approach to developing shows.  

Netflix has introduced a plan to crack down on password sharing in Chile, Peru and Costa Rica. 

No plans have been announced to introduce the feature in America, but four out of five Americans have admitted they share a password on their streaming accounts, and Netflix could potentially earn up to $1.6 billion in global revenue annually by stopping the practice. Assuming, of course, the people using shared passwords decide to sign up for the service.

Netflix is reportedly looking into adding a live streaming option, which could potentially help it to expand into initiatives such as airing live events such as its Netflix Is A Joke festival.