Netflix goes on a firing spree as subscription loss bites hard
Los Gatos, California - Netflix on Thursday laid off 300 employees in the latest round of cuts as the company responds to a revenue slowdown and its first subscriber loss in more than a decade.
The streaming giant did not say what departments were affected by the cuts.
"Today we sadly let go of around 300 employees," a Netflix spokesperson said in a statement.
"While we continue to invest significantly in the business, we made these adjustments so that our costs are growing in line with our slower revenue growth. We are so grateful for everything they have done for Netflix and are working hard to support them through this difficult transition."
The company in May slashed 150 full-time positions across a variety of units shortly after reporting a loss of 200,000 subscribers in the most recent quarter. In addition, dozens of contractors were let go, some of whom worked on social media accounts to promote the company's diverse programming.
Netflix expects to lose two million more subscribers this quarter as it faces a more competitive streaming environment. The rise of Disney+, HBO Max, Paramount+, and other services have increased pressure to make more hit programming.
The stock has fallen 70% so far this year. The dramatic slowdown comes after Netflix subscriber numbers surged early during the Covid-19 pandemic, when people's out-of-home entertainment options were limited.
In addition to layoffs, Netflix will try to gain more subscribers by offering a cheaper version with commercials and experimenting with ways to make more money from password sharing.
Cover photo: REUTERS