Netflix lays off hundreds of employees in new round of layoffs

The streaming giant is desperate to cut costs as it deals with the fallout from declining subscribers and a huge loss in market value.

Netflix laid off another 300 employees in a desperate attempt to cut costs.

The American streaming company is under siege as it finds a decline in subscribers, causing its stock price and market value to plummet.

“Today, unfortunately, we laid off about 300 employees,” This was announced to Deadline by a Netflix spokesperson..

“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.”

The layoffs were expected and were noted earlier this week Variety, but initially it was supposed to be about 150 employees.

The first round of layoffs at Netflix occurred in May, affecting about 150 employees and dozens of contractors. Among those fired last month were several positions in the company’s animation department, as well as writers in the editorial department of Netflix Tudum.

The company has about 11,000 employees worldwide.

Netflix is ​​trying to bring costs back into line after a disastrous financial report at the end of April.

The company saw a net decline of 200,000 subscribers in the first three months of this year as a result of increased competition in the industry and the loss of 700,000 subscribers in Russia, where it had to suspend service as a result of Vladimir Putin’s invasion of Ukraine.

The shock drop in the number of subscribers, as well as the forecast loss of another 2.5 million paid accounts this quarter, led to a sharp drop in the price of Netflix shares.

Immediately thereafter, the price of its shares lost a third of its value, amounting to more than 50 billion US dollars. Netflix’s share price is currently $170, up from $605 at the start of the year and a 12-month high of $700.

Netflix has turned down several films, such as the Steve Carell comedy. space forces and a superhero series created by Michael B. Jordan. Dion’s upbringingas well as stopping production of shows in development, including The Ava DuVernay Show. Wings of fire and Meghan Markle Pearl.

The streamer also revealed that it will release two controversial updates to its platform, the first of which is an ad-supported subscription option that will allow users to pay lower fees in exchange for watching ads.

Netflix co-founder Reed Hastings has previously been vehemently opposed to the level of ad support but acknowledged the option would give customers a choice.

Another step Netflix is ​​looking to take is to crack down on password sharing, a practice that involves 100 million of its 222 million paying members. additional fee for transferring your password outside your family.

Netflix employees have also had a hard time with the company due to recent controversial releases, including a comedy special by Dave Chappelle in which he made transphobic comments.

Netflix employees who objected to Chappelle’s content protested internally and physically outside the company’s Los Angeles headquarters after co-CEO and chief content officer Ted Sarandos circulated memos defending Chappelle’s platform choice.

A few weeks later, Netflix issued another message to disgruntled employees, reiterating its support for “artistic expression” and urging employees who cannot do so to leave the business.

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