Netflix lets go of some 150 workers amid financial issues

US-based streaming service Netflix has dismissed around 150 contractors, with many of those cut coming from its struggling fan-focused website Tudum, reported The Verge.

Photo credit: grinvalds / 123RF

At least 26 contractors let go were working on Tudum. They were informed of the move via a mass email, which Netflix spokesperson Erika Masonhall confirmed was sent by the contracting company.

Masonhall also stated that the layoffs were mainly driven by financial issues rather than performance. “As we explained on earnings, our slowing revenue growth means we are also having to slow our cost growth as a company,” the announcement read.

In the fourth quarter of 2021, Netflix reportedly lost around 200,000 subscribers, the first time it shed subscribers in over a decade. The company also shut down its services in Russia in March, which is expected to cost it an additional two million subscribers in the next quarter.

In its earnings call for Q1 2022, Netflix stated that it will reduce its spending for the next two years amid slower revenue growth. It is also weighing a cheaper, ad-supported tier and a crackdown on password sharing to bolster subscriber growth.

See also: Chinese social commerce firm Xiaohongshu to axe 20% staff