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Netflix takes a page out of the industry’s playbook by making 150 staff cuts. It comes just one month after reporting subscriber numbers were declining for the first time in 10 years.

In a move that will mainly impact the company’s US office in California – around 2% of its North American workforce, Netflix announced an unprecedented economic reduction on Tuesday. 

Netflix said the job redundancies were rooted in the company’s profit plummeting. As a result, it faces a massive drop in its viewers this year. 

“These changes are primarily driven by business needs rather than individual performance, which makes them especially tough as none of us want to say goodbye to such great colleagues,” said the giant in a statement. 

No further details about which parts of the business would experience job recessions. As per a recent Los Angeles Times report,  recruiting, communications, and the content department were all affected.

A few individuals shared their job loss online. 

Netflix’s surprising loss of 200,000 subscribers in the first three months this year and a prediction that another 2 million will quit by next quarter has left the industry scratching their heads.

The announcement brought an investor sell-off, with the company’s stock dropping 35% in one day. It is currently trading at $190, a 46% plunge from its former premium. 

With over 220 million subscribers worldwide and still holding the market leader title, Netflix still experienced tough competition with emerging services like Disney Plus, HBO, and Amazon’s Prime Video. 

Last month, in its earnings report, Netflix also stated that the conflict in Ukraine and the choice to hike its prices in the US had caused the loss of its subscribers. Moreover, withdrawing from the Russian market solely had lost the platform 700,000 users. 

In addition to the job redundancies, the firm is also trimming content and ramping down on its own creations. In early May, it halted the making of Pearl, an animated series made by Meghan Markle, in its measure to reduce costs. 

A few analysts state that following the soar in sign-ups during the pandemic, Netflix now has dried up in finding trouble-free ways to develop business growth. 

The giant says it’s seeking a less expensive, ad-based model and considering clamping down on password sharing, which has cost it 100 million households. 

Netflix is not the only firm that is making job recessions. Over the past few weeks, an array of US tech firms, from emerging to established ones like Uber and Twitter, have stated that they are slacking off or halting hiring or, such as online car sales company Carvana, reported job cuts, pointing out a setback.