TheCable

Netflix, an American streaming service, says it laid off 150 staff members in the United States amid dwindling revenue margins.

The company said this in a statement on Tuesday.

Netflix said the layoff represents only two per cent of its total workforce force.

It added that the decision to sack its workers was basically due to the slow revenue growth and not based on performance.

“Our slowing revenue growth means we are also having to slow our cost growth as a company,” the statement reads.

“These changes are primarily driven by business needs rather than individual performance, which makes them especially tough as none of us wants to say goodbye to such great colleagues.”

Last month, TheCable reported that the streaming giant lost 200,000 subscribers in the first quarter of 2022.

In March, Netflix suspended its services and future projections in Russia, which led to a drop of 700,000 subscribers.

Netflix had also considered a crackdown on sharing of passwords and raised its monthly subscription price in the United States and Canada this year.

The streaming platform had complained that its revenue growth slowed considerably, adding that its operating margin would be pegged at 20 per cent.

“While we work to re-accelerate our revenue growth — through improvements to our service and more effective monetisation of multi-household sharing — we’ll be holding our operating margin at around 20 per cent,” it said.