Los Gatos Weekly Times

Netflix cuts 150 jobs amid slowdown

Layoffs represent about 2% of the company's workforce

- By George Avalos gavalos@ bayareanew­sgroup.com

LOS GATOS >> Netflix has chopped about 150 jobs — including more than 100 in Los Angeles — to cope with a drastic slowdown in the growth of the streaming pioneer's revenue amid increasing­ly fierce competitio­n in its primary markets.

The job cuts represent about 2% of the Los Gatosbased tech titan's worldwide workforce.

At least 106 of the job cuts are located at the Netflix offices in Los Angeles, according to an official filing by the company with state and local government officials.

“The mass layoff is expected to be permanent,” Netflix stated in the filing with the Employment Developmen­t Department (EDD). “The employees do not have bumping rights and are not represente­d by a union or other bargaining unit representa­tive.”

The effective date of the job cuts was May 17, although a letter from Netflix to the state EDD indicated that some job cuts began as early as April 28, public records show.

“Our revenue growth has slowed considerab­ly,” Netflix said in comments about the company's finances for the Januarythr­ough-march first quarter of 2022, according to a filing with the Securities and Exchange Commission.

Netflix also reported a slump in subscriber­s and forecast that even more would exit the streaming service.

At the end of December, Netflix served 221.84 million subscriber­s. But at the end of March, the company served 221.64 million subscriber­s, a decline of 200,000 customers.

Netflix predicted that its subscriber base would drop to 219.64 million by the end of June 2022, a decrease of 2 million subscriber­s.

The company said it's facing revenue headwinds on multiple fronts as well as fast-expanding competitio­n.

“Competitio­n for viewing with linear TV as well as Youtube, Amazon, and Hulu has been robust for the last 15 years,” Netflix said in the SEC filing.

The competitor­s now include well-heeled entertainm­ent titans such as ABC owner Disney, NBC owner Comcast and CBS owner Paramount.

“Over the last three years, as traditiona­l entertainm­ent companies realized streaming is the future, many new streaming services have also launched,” Netflix said in the regulatory documents.

The company's current headwinds weren't easily identifiab­le earlier due to the boom in streaming activity during the two years of coronaviru­s-linked lockdowns and business shutdowns, which caused more people to stay home — and to binge-watch television shows and movies.

Complicati­ng matters is the big increase in sharing of accounts by primary subscriber­s.

“It's harder to grow membership in many markets,” Netflix said, “an issue that was obscured by our COVID growth.”

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