Netflix lays off 150 employees amid subscriber losses.
The job cuts come as the streaming company reported its first loss of subscribers in more than a decade and forecasts deeper losses in the coming quarter.
Shares of the company are down nearly 70% since January.
As reported, the eliminated positions represent less than 2% of the streamer’s 11,000 staffers, with most of the cuts happening in the U.S.
“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,” the company said in a statement issued on Tuesday.
“We’re working hard to support them through this very difficult transition,” it added.
Netflix said that the war in Ukraine and fierce competition contributed to the loss of customers.
As a result of its declining growth, Netflix said it would introduce a cheaper, ad-supported tier and look more closely at its spending.
“We’re trying to be smart about it and prudent in terms of pulling back on some of that spend growth to reflect the realities of the revenue growth of the business,” Netflix Chief Financial Officer Spencer Neumann told investors during the company’s most recent earnings call.
As reported, the streaming giant is also working to crack down on rampant password sharing, noting that in addition to its 222 million paying households.
The sources claim that there are more than 100 million additional households through account sharing.