Teen drama Heartstopper has become a breakout hit on Netflix
(Picture: Netflix)Netflix has has laid off 150 employees – mostly in the US - after a slowdown in revenues and a slump in subscriber numbers.
The cuts equate to 2% of the workforce in the country.
In a statement, Netflix said: “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.
“As we explained on earnings, our slowing revenue growth means we are also having to slow our cost growth as a company. So sadly, we are letting around 150 employees go today, mostly US-based.”
Last month Netflix’s stock price plunged by 30%, knocking $47 billion (£38 billion) off the company’s value, after it revealed its first fall in subscriber numbers in a decade. Netflix lost 200,000 customers in the first three months of the year while rivals such as Disney enjoyed strong growth.
Pulling out of the Russian market earlier this year cost Netflix 700,000 members alone.
News of the drop in subscriber numbers caused an investor sell off. New York hedge fund supremo Bill Ackman almost immediately cancelled his interest in the platform.
Ackman’s investment vehicle Pershing Square dumped its stake in Netflix at a loss of $400 million (£306 million). The streaming service has now seen its market value decline by $160 billion since the start of the year.
Netflix has announced plans for an ad funded version of its platform to try and revive subscriber growth. On the announcement of the drop in subscriber numbers, Netflix CEO Reed Hastings said he remained “against the complexity of advertising” but said the move would offer greater consumer choice.
As of December, Netflix had an estimated 11,300 full-time staff.
