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Netflix orders second round of layoffs, streaming giant meltdowns

Netflix confirmed on Thursday that it is making a second round of layoffs as the streaming giant grapples with declining paid subscriber numbers and a painful drop in its share price.

A Netflix spokesperson said the company had “unfortunately terminated approximately 300 employees”. Company executives had previously acknowledged plans to cut spending due to slowing growth.

Variety, which was first to report on the latest round of layoffs, said most of the job losses occurred in the United States and occurred across multiple business divisions.

Netflix has about 11,000 employees, according to Variety. That would mean the latest round of layoffs affected around 2% of its overall workforce.

The latest layoffs were announced just weeks after Netflix cut around 150 employees. The company said at the time that these cuts were “primarily driven by business needs rather than individual performance.”

Netflix said the cuts would affect around 300 employees.
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“As we continue to make significant investments in the business, we have made these adjustments so that our costs increase in line with our slower revenue growth,” the Netflix spokesperson said in a statement Thursday. . “We are so grateful for all they have done for Netflix and are working hard to support them through this difficult transition.”

Netflix shares have been under pressure since the streaming giant reported a loss of paid subscribers for the first time in more than a decade. The company said it lost about 200,000 subscribers in the first quarter and expects to lose another 2 million in the second quarter.

The losses came during a time of intense competition in the streaming business from Disney+, HBO Max and Amazon Prime Video – as well as decades-high inflation that has caused Americans to rethink their extra spending .

Netflix chief financial officer Spencer Neumann discussed plans to cut spending during the company’s earnings call in April.

“We’re trimming some of our spend growth, both content and non-content spend,” Neumann said. “We’re trying to be smart and careful in terms of reducing some of that expense growth to reflect the revenue growth realities of the business.”

Shares of Netflix were flat in trading on Thursday after the layoff announcement. However, shares are down more than 70% so far this year on a sell-off in the tech sector.

New York Post

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