Netflix on Tuesday announced it was cutting 150 jobs amid a slowdown in revenue and a decline in subscribers that has shaken the entertainment industry.
The company did not say what departments would be affected by the cuts, though most of the job losses are in the U.S.
“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.”
The announcement comes after Netflix reported a loss of 200,000 subscribers in the first quarter for the first time in more than a decade. The Los Gatos, Calif.-based streaming service expects to lose 2 million more subscribers this quarter. Following its earnings report, the company’s stock declined 35.1% to $226.19 on April 20, its biggest one-day drop since 2004.
Netflix is rethinking its business model, which long capitalized on providing a large volume of content that was commercial free for a premium price of $15.49 a month for a standard subscription.
