In the wake of slowdown in growth and loss of subscribers, Netflix, the global streaming giant, is laying off 150 employees. These employees constitute about two per cent of the total workforce of 11,000 at Netflix.
As per reports, the Company is making changes in its animation department from which about 70 roles have been removed. Other roles that have been affected in this round of layoffs are that of the contractual staff who work at the Netflix’s fan-focused content-based website,Tudum. This website serves as a supplement to Netflix’s content. As per global media reports, about 26 contractor job roles have been done away with.
Netflix has clarified that this round of layoffs is the result of a business need and that employees have not been asked to leave basis their individual performance. Netflix states that it is quite hard to let go such talented people and that the Company is doing its best to support these employees.
The outgoing employees will be given a severance package of at least four months’ salary, though the time period may increase as per the tenure of the concerned employees in the Company.
This round of layoffs has come just a month after Netflix fired about 10 to 20 employees in its marketing and editorial division at Tudum in April.
In the first quarter of this year, Netflix has witnessed a slowdown in revenue. In fact, at the closing of the first quarter, the Company reported losing 2,00,000 subscribers. It now expects to lose another two million in the coming quarter. Therefore, the Company is taking measures to reduce costs and increase margins.