We’re Getting Laid! (off)

Even with the markets being up on Tuesday, it wasn’t enough to save the streaming service (obviously). Netflix announced that it would be cutting 150 jobs due to a slowdown in revenue and a decline in subscriber growth. 

“As we explained on earnings, our slowing revenue growth means we are also having to slow our cost growth as a company,” a Netflix spokesperson said in a statement. “So sadly, we are letting around 150 employees go today, mostly U.S.-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.” 

It shouldn’t come as a shock after their recent earnings report. The company expects to lose an additional 2 million subscribers this quarter, on top of the reported 200,000 subscribers lost in the last one. Throughout the pandemic, the company increased its staff to about 11,300 employees as of December (LA Times). This layoff is about 1% of its workforce. Moving forward the company is likely to restructure itself with a lower-tier subscription that is said to include commercials (working backward). In addition to this, the company has recently purchased mobile game developers including Boss Fight & Night School Studio. Is the company going to die? Probably not but it’ll take some time to return to all-time highs around $700.