Layoffs have hit Netflix again, with the streamer laying off around 300 employees on Thursday, the company said.
The job cuts affect several business functions of the company, with the bulk of the jobs being lost in the United States.
These new layoffs, which Variety first announced would come earlier this week, hit weeks after the streaming giant – which has around 11,000 employees worldwide – made a first round of cuts. of similar size in May. At that time, Netflix laid off 150 employees and dozens of contractors and part-timers. The streamer indicated that more rounds of layoffs would take place this year after this first batch, as the company tries to adjust to its heavily weakened stock price.
“Today we unfortunately terminated approximately 300 employees,” a Netflix spokesperson told NBC News. “As we continue to invest significantly in the business, we have made these adjustments so that our costs increase in line with the slower growth in our revenues. We are very grateful for all they have done for We and Netflix are working hard to support them through this difficult transition.
Netflix has lost nearly 70% of its value since announcing it lost 200,000 subscribers at the end of the first quarter and is expected to lose another 2 million in the second quarter. Shares of Netflix opened at $180.08 per share on Thursday and were trading at $180.93 just after 11 a.m. ET. Shares of Netflix were trading north of $600 in January.
In its latest results, Netflix pledged to cut costs in order to maintain margins at 20%. The streamer still plans to spend aggressively on content with a budget of $17 billion in 2022 for shows and movies. That’s roughly in line with what he shelled out in 2021.
After years of easily winning the streaming wars, Netflix has finally started to take a hit amid the onslaught of new and revamped competitors, including Disney’s Disney+, Comcast’s Peacock, Paramount Global’s Paramount+, and Warner Bros. Discovery’s HBO Max. With more new platforms for customers to choose from and splashy, big-budget titles appearing on these services, there has been increased pressure on Netflix to attract and retain subscribers as it loses valuable content from the library. for the benefit of businesses that bring their content home for their own banners.
Compounding Netflix’s struggle is the fact that the media sector, not to mention the rest of the US economy, is being hit by recession fears that have pushed the market into bear territory. But Netflix isn’t the only Hollywood company making layoffs amid the chaos on Wall Street. Warner Bros. Discovery has also cut key staff recently as it seeks to reduce costs and debt following the completion of the merger between WarnerMedia and Discovery that led to the creation of the new company this spring.