Video streaming company Netflix said it laid off 300 people – representing 3% of its workforce – due to slowing growth and the economic downturn. This is the company’s second round of layoffs in two months, after laying off 150 employees in May. In April, it also laid off a group of staff from its editorial arm Tudum, which was launched last December.
“Today, we unfortunately laid off approximately 300 employees,” Netflix said in a statement Thursday. “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 Netflix and we are working hard to support them through this difficult transition,” a company spokesperson said in a statement.
The company noted that while most of the laid-off employees were based in the United States, workforce reductions also took place in Asia Pacific, Latin America and Europe, the Middle East and Africa (EMEA) .
Netflix joins a long list of companies like Coinbase, Better.com and MasterClass that have laid off a significant portion of their staff.
The company hit a snag in its growth this year, as it lost more than 200,000 subscribers in the first quarter. At that time, the company said it expected to lose 2 million paid subscribers worldwide in the second quarter. The company cited the Russian invasion of Ukraine, the covid pandemic and shared passwords as the main factors behind the slowdown.
Netflix stock, which was around $512 a year ago, is trading at $178.93 at the time of writing, down almost 65%.
To increase revenue and number of subscribers, the company is working on many initiatives. He plans to air his unscripted shows live as stand-up comedies. It is doubling down on its gaming efforts by releasing new titles as well.
The company also plans to charge you more if people outside your household use your account. He has already tested this feature in Chile, Costa Rica and Peru, but it’s not going well. The streaming service also plans to add an ad-supported tier this year to reach a wider audience.