“Today we unfortunately have left about 300 employees,” a Netflix spokesperson told the post. “As we continue to invest heavily in the business, we have made these adjustments so that our costs grow in line with our slower revenue growth. We are very grateful for everything they have done for Netflix and are working hard to support them through this difficult transition.”
This is the second round of layoffs from Netflix due to slow revenue growth. He. She 150 employees laid off, along with several part-time workers and contractors, in May. The company has about 11,000 employees around the world.
Netflix too leave it 10 or so employees from the marketing department and internal news site, Tudum, in April. These layoffs were due to a reorganization of the Netflix marketing team. It was argued that these were normal business decisions and were not directly related to cost reductions.
The recent layoffs follow a sharp drop in Netflix’s stock price, which has fallen nearly 70 percent since the start of the year. In the first quarter of 2022, the number of the company’s subscribers increased dropped for the first time. decreased by 200,000, in large part due to Netflix has pulled out of Russia It has lost 700,000 subscribers there. In its latest earnings report, Netflix said it expects to lose up to two million subscribers in the current quarter as well.
Along with cutting costs, Netflix is looking at More ways to generate income. These plans include ad-supported and Extra charge For those who share their accounts with people who live in other homes.
However, the company is recruiting on other fronts and still plans to invest heavily in content. It has allocated about $ 17 billion for this purpose this year. News of layoffs comes a week after Netflix announce A reality competition series based on its comprehensive drama, squid game. The winner will receive $4.56 million.
Update 6/23 4:30 PM ET: Clarify some details about the layoffs in April.
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