Netflix is Battening Down the Hatches

The streaming giant is laying off around 150 employees across the company, according to an internal memo sent Tuesday and obtained by The Hollywood Reporter.

🍿💻 More deets…

• The cuts represent 2% of its total workforce, with most of the layoffs happening in the US.
• The company is also making changes to its animation unit, which will result in the loss of 70 jobs. Contractor roles in social media and publishing channels are also being reduced.
• This new round of cuts comes less than a month after multiple full-time staff and contractors in Netflix’s editorial and marketing division were laid off.

📸 The big picture: Last quarter, Netflix reported its first subscriber loss in a decade – and this quarter is forecasted to be even worse. Its shares are down ~70% this year.

• In response, the streaming giant is launching a cheaper, ad-supported tier, cracking down on password sharing, and “pulling back” its spending to maintain its margins (though one should mention its $17 billion content bill).

📉 Zoom out: Several tech companies have also announced hiring freezes and layoffs recently, including Meta, Amazon, Uber and Robinhood.

+In other streaming news: The new, ad-supported version of Disney+ won’t have alcohol or political advertising, or ads from rival entertainment companies; Disney also said the total ad load will be limited to 4 minutes per hour and that preschool children won’t be served any ads, per the WSJ.