Report: Netflix Employees Fear More Cuts, Layoffs, ‘It’s Definitely Not the End of It’

The worst may be yet to come for Netflix as employees brace themselves for more cuts and layoffs as executives seek to rein in costs following the streamer’s disastrous first quarter and expectation of even rougher waters ahead.

Sources inside the company expect layoffs at Netflix to continue as the company outsources more positions — especially those overseas — to third parties to save money, according to the Hollywood Reporter.

“We thought that was the end of it [layoffs], and now I’m being told, ‘No, it’s definitely not the end of it,’” a Netflix source told the trade publication.

Three individuals in different divisions at Netflix told the Reporter that there has been a noticeable slowdown in recent hiring.

“I’ve been told the budget for personnel on my team has to remain flat,” one anonymous Netflix insider said. “I don’t know if [top management] actually uses the word ‘hiring freeze.’ I mean, we use it, and we know it’s true. I know other managers have been told the same.”

On Thursday, Netflix laid off staffers at its in-house fan site Tudum. The streamer also recently cleared out a swath of its animation department.

Netflix reported last week that it lost 200,000 subscribers during the first quarter and expects to lose a staggering 2 million more in the months ahead.

Employees are also unhappy about the company’s stock price, which has plummeted more than 40 percent since last week and is down more than 60 percent for the year. Netflix reportedly allows employees to choose their compensation allocation mix between base pay and stock options.

“Everyone is definitely sweating over the options they took when the stock was at its peak,” another company source said.

Overall, Netflix employees feel the company is facing an existential crisis.

“The bloom has been off the rose for a while,” a Netflix executive, who requested anonymity, told the Reporter. “Internally, the feeling that it’s the place to work has been fading long before this. You’re just seeing it now.”

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