The world's online video service, OTT industry, which has grown rapidly in the face of the global COVID-19 pandemic, is now taking measures to reduce subscribers due to daily recovery.
According to Reuters, Netflix recently laid off 150 employees.
Netflix said in a statement that it was an inevitable move following the slowing growth.
The 150 layoffs are based in the US and Canada, accounting for 2% of Netflix's total workforce.
Netflix's move follows the recent announcement of a subscriber decline and comes amid expectations that a bigger loss is expected in the second quarter.
In fact, Netflix recorded its first decline since 2011 in the first quarter of this year, with the number of paid subscribers dropping by 200,000 compared to the fourth quarter of last year.
Earlier last month, Netflix's chief financial officer, Spencer Neumann, said during the company's first-quarter earnings announcement that it plans to cut some of the company's spending over the next two years.
The New York Times has reported that Netflix is likely to carry out additional layoffs by the end of the year.
Netflix's subscriber decline appears to be the result of the prolonged war following the Russian invasion of Ukraine, the full-fledged recovery of daily life related to COVID-19, and fierce competition in the OTT industry.
Meanwhile, Netflix's strong competitor, Walt Disney's OTT Disney Plus, has come up with a new service plan with advertisements.
Disney Plus has announced that it will only run 4 minutes of ads per hour on its ad version service, which will be launched at the end of the year.
Unlike Netflix, Disney+ added 7.9 million subscribers in the first quarter, bringing the number of global subscribers to 137.7 million.