Exclusive: Trimming continues today on Netflix. Out of the 11,000 manpower of the streamer, about 150 posts are being eliminated. They are based in the United States of America, with many of them holding executive positions with core content.
“As we have explained in terms of revenue, our slower growth in revenue means that as a company we need to slow down our spending growth as well. So sadly, we’re leaving about 150 employees today, mostly US-based, “a Netflix spokesman said in a statement on Deadline. “I do not want to say goodbye to my colleagues. We are working hard to support them through this difficult change.”
Staff reductions were expected. Netflix’s stock has plummeted since Streimer reported last month that the company has lost 200,000 subscribers worldwide since the end of 2021, down more than a decade.
In terms of revenue, Street Streaming expected more from the giant, with analysts agreeing for 7.93 billion. Netflix reported 1 7.868 billion in Q1 earnings, down 10% from a year earlier, and earnings per share fell 6% to 3 3.53 a year earlier.
“Our earnings growth has slowed considerably as our results and forecasts show below,” the company said in its quarterly letter to shareholders. “Streaming is winning over Linear, as we predicted, and Netflix titles are very popular worldwide. However, our relatively high family penetration – when combined with the large number of family sharing accounts – combined with competition, is creating headwinds of revenue growth. “
In a Netflix earnings call, Spence Newman stated that “… probably, for the next 18, 24 months, let’s call it the next 2 years, we’re working on that operating margin, which means we’re lagging behind in terms of both content and non-content spending.” Some of our spending growth, but still our spending is rising and still aggressively investing in that long-term opportunity, we’re trying to be smart about it and try to be prudent in bringing back some of it to reflect the reality of increasing business revenue. “