Weeks after Netflix reported its first loss in subscribers since 2011, the company has laid off about 150 employees.
“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 U.S.-based,” Netflix announced on Tuesday.
The amount of people laid off is close to 2% of Netflix’s employees. Those affected will be given a severance package, starting at four months although it could be subject to change.
In April, a financial report detailed that the streaming service lost about 200,000 subscribers in the first quarter. They have added that they are set to lose another 2 million subscribers in the second quarter.
Netflix has attributed the war in Ukraine and harsh competition as reasons why they have lost subscribers.
As of now, Netflix has 221.6 million subscribers. They are still ahead of their competition.
The company is planning on aggressively monitoring password-sharing. They are also planning to start a “lower-priced ad-supported tier,” before the year is over. Their objective is to increase finances and subscribers.
Furthermore, the streaming service has a variety of payment tiers. The plan that most users pay for is $15.49 per month. The price of the lower ad-supported tier hasn’t been released.
Other streaming platforms have some of the same offerings. For instance, HBO’s ad-free service runs for $15 per month. Their services that contain commercials are $10 per month.
Netflix Lays Off Close To 150 Employees