Video streaming company Netflix said it laid off 300 people, 3% of its workforce, due to slower growth and the economic downturn. This is the second massive layoff at the firm in two months after the layoff. 150 employees in May. In April, he also fired several employees from his editorial division, Tudum, which launched just last december.
“Today, we unfortunately laid off about 300 employees,” Netflix said in a statement Thursday. “While we continue to invest heavily in the business, we have made these adjustments to ensure our costs rise in line with slower revenue growth. We are so grateful for all they have done for Netflix and are working hard to support them through this difficult transition,” a company spokesperson said in a statement.
The firm noted that while most of the laid-off employees were based outside the US, cuts also occurred in Asia Pacific, Latin America, and Europe, the Middle East and Africa (EMEA).
This year, the company faced a growth hurdle as it lost more than 200,000 subscribers in the first quarter. At the time, the firm said it expected to lose 2 million paying subscribers worldwide in the second quarter. The company cited Russia’s invasion of Ukraine, the coronavirus pandemic and the exchange of passwords as the main factors behind the slowdown.
Netflix shares, which were worth about $512 a year ago, are trading at $178.93 at the time of writing, a drop of almost 65%.
To increase revenue and the number of subscribers, the company is working on numerous initiatives. He plans broadcast their unrecorded shows such as stand-up comedies. He redoubles his playing efforts, launch of new titles too much.
The company also plans to charge you extra if people outside of your household members use your account. This feature has already been tested in Chile, Costa Rica and Perubut this not very good. The streaming service also plans to add an ad-supported tier this year to reach wider audience.
Credit: techcrunch.com /