Netflix fired about 300 people in its latest round of layoffs. Most of the cuts were in the United States, according to Variety, and a number of departments were affected.
“Unfortunately, we released about 300 employees today,” a Netflix spokesman told the paper. “As we continue to invest heavily in business, we have made these adjustments so that our costs grow in line with our slower revenue growth. We are so grateful for everything they have done for Netflix and we are working hard to support them through this difficult transition. “
This is the second round of Netflix layoffs due to slower revenue growth. It laid off 150 employees, along with many part-time workers and contractors, back in May. The company has about 11,000 employees worldwide.
Netflix also laid off 10 employees from its marketing department and domestic news site Tudum in April. These specific layoffs are due to a reorganization of Netflix’s marketing team. It is claimed that these are normal business decisions and are not directly related to cost reduction.
Recent cuts have followed a sharp drop in Netflix’s share price, which has fallen about 70 percent since the beginning of the year. In the first quarter of 2022, the number of the company’s subscribers dropped for the first time. It fell by 200,000, largely because Netflix withdrew from Russia and lost 700,000 subscribers there. In its latest earnings report, Netflix said it expects to lose up to 2 million subscribers in the current quarter.
Along with reducing costs, Netflix is looking for more ways to generate revenue. These include ad-supported plans and additional fees for those who share their accounts with people living in other households.
The company rents on other fronts and still plans to invest heavily in content. This year, it has set aside about $ 17 billion for this purpose. The news of the layoffs comes a week after Netflix announced a reality racing series based on its all-conquering drama, Squid Game. The winner will receive $ 4.56 million.
Update 6/23 16:30 ET: Clarification of some details about the redundancies in April.
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