Netflix fires 3% of its workforce in second round of job cuts

The streaming company's latest lay-offs come amid uneven subscriber growth

FILE PHOTO: A smartphone with the Netflix logo lies in front of displayed "Streaming service" words in this illustration taken March 24, 2020. REUTERS/Dado Ruvic/Illustration/File Photo  GLOBAL BUSINESS WEEK AHEAD
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Netflix laid off another 300 employees, or about 3 per cent of its workforce, as the streaming company seeks to bring costs under control amid uneven subscriber growth.

The job losses are across the company, with most affected workers based in the US. The cut is twice as large as the one the streaming business made last month. The news was first reported in Variety.

“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,” a Netflix representative said.

“We are so grateful for everything they have done for Netflix and are working hard to support them through this difficult transition.”

Netflix is retooling its operations after the departure of 200,000 subscribers during the first quarter of 2022 upended the company’s subscription-based revenue model.

The difficulties have bludgeoned the company’s stock price and hurt worker morale.

In addition to the lay-offs in May, Netflix also let go some contract workers and editorial staff from its Tudum site in April — part of a scaling back of its marketing budget.

Netflix’s subscriber woes were in part due to a price increase in January. It is also facing heightened competition with streaming content from Amazon, Walt Disney and Hulu, all of which have posted subscription growth recently.

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Updated: June 24, 2022, 5:06 AM
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