In an effort to contain costs in the face of uneven membership growth, streaming behemoth Netflix Inc. terminated another 300 workers.
Across the company, there will be job losses, with majority of the US-based employees being impacted. Compared to the cut the streaming giant made last month, this one is twice as big. The news was initially covered by Variety.
In an email, a Netflix representative said, “While we continue to invest significantly in the business, we made these adjustments so that our costs are growing in line with our slower revenue growth,” We are doing everything we can to support them as they navigate this difficult transition and are incredibly grateful for everything they have done for Netflix.
Following the disruption of its subscription-based business model caused by the loss of 200,000 customers in the first quarter of 2022, Netflix is restructuring its operations. The issues have depressed employee morale and battered the stock price of the company.
Along with the layoffs in May, Netflix reduced its marketing expenses in April by firing several contract workers and editorial staff from its Tudum website.
Concerns among Netflix subscribers were exacerbated by a price rise in January. It also faces increased competition from streaming services like Hulu, Walt Disney Co., and Amazon.com Inc., all of which recently reported increases in subscriber numbers.