Netflix is shedding 150 workers, together with dozens from its Tudum fansite

Netflix is shedding round 150 workers and company contractors following a disappointing earnings report, citing “slowing income progress,” as first reported by Selection.

A supply conversant in the scenario tells The Verge the layoffs embody no less than 26 workers members engaged on the corporate’s fan-focused Tudum web site, which serves as a complement to Netflix’s content material. Previous to this current spherical of layoffs, Netflix let go of around 25 advertising and marketing workers members, together with near a dozen who labored on Tudum. The 26 workers laid off immediately have been knowledgeable of the transfer in a mass electronic mail.

The streaming large has confirmed to The Verge that almost all workers affected by the layoffs are situated within the US. Netflix spokesperson Erika Masonhall issued the next assertion in response to The Verge’s request for remark, noting that the layoffs have been primarily pushed by monetary points, relatively than efficiency:

As we defined on earnings, our slowing income progress means we’re additionally having to sluggish our value progress as an organization. So sadly, we’re letting round 150 workers go immediately, principally US-based. These adjustments are primarily pushed by enterprise wants relatively than particular person efficiency, which makes them particularly powerful as none of us wish to say goodbye to such nice colleagues. We’re working laborious to assist them by this very tough transition. Quite a few company contractors have additionally been impacted by the information introduced this morning. We’re grateful for his or her contributions to Netflix.

Final quarter, Netflix reported dropping round 200,000 subscribers — the primary time Netflix has misplaced subscribers in over a decade. It additionally expects to lose an extra 2 million within the subsequent quarter. Russia’s invasion of Ukraine is partially responsible for the loss in subscribers, as Netflix shut down its companies in Russia in March. Netflix had a low-key quarter with fewer large Hollywood hits launched on the platform, which didn’t assist both.

Spencer Neumann, Netflix’s chief monetary officer, stated throughout final quarter’s earnings name that the corporate might be pulling again on spending for the subsequent two years or so.

The streaming large has informed workers a less expensive, ad-supported choice will launch later this 12 months in addition to a crackdown on password sharing because it makes an attempt to reignite subscriber progress.

Disclosure: The Verge is at present producing a sequence with Netflix.

Extra reporting by Mia Sato.