Streaming giant Netflix was confirmed on Tuesday as preparing to fire roughly 150 employees, saying it was due to its massive loss of subscribers and was not reflective of employee performance.
“As we explained on earnings, our slowing revenue growth means we are also having to slow our cost growth as a company,” a Netflix representative told CNBC on Tuesday.
“So sadly, we are letting around 150 employees go today, mostly US-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.”
The company’s shares collapsed in April amid news of the sharp attrition of its subscriber base, with share value falling nearly 70% from their January numbers. The company said it had already lost 200,000 users and expected to lose another 2 million - its first such loss in a decade.
Layoffs began late last month with its fan-focused website, Tudum, where an entire team of 10 writers, nearly all of them women of color, were fired.
All these numbers are just a tiny part of Netflix’s empire, however. The California-based company employs some 11,000 workers and counts roughly 222 million paying households - and another 100 million that view Netflix by sharing accounts.
Following the announcement of the losses last month, Netflix said it could soon begin cracking down on account-sharing as well. It is also considering allowing commercials, something it’s long been hailed for not having.