Netflix lays off 300 employees in its second round of job terminations
On June 23, Netflix Inc. announced that 300 employees have been let go as part of the second wave of layoffs. In order to reduce expenses after losing a sizable portion of its subscriber base in the past, the streaming behemoth laid off around 4% of its workers. Following the company’s decision to eliminate 150 jobs last month, this move reportedly had the greatest impact on their US employees. A few months ago, Netflix suffered a huge loss when it lost 200,000 customers for the first time in ten years.
The streaming behemoth released a statement on the development on Thursday, June 23. They made this modification, it was alleged, in order to ensure that their expenditures grew at the rate of the company’s “slower revenue growth,” despite continuing to “invest considerably in the business.” Although it had previously been stated that there would be 150 terminations, this round saw a rise to 300. After Netflix originally disclosed these terminations, it took another two days before the affected employees received notification. The corporation continues to employ roughly 11,000 people worldwide as of the current year.
The biggest video streaming company in the world has obviously been under a lot of stress lately. This is due to the economy’s inflation, Russia’s invasion of Ukraine, and the fierce rivalry in the streaming market. Although it dominated the streaming market, it faced fierce competition from businesses like Comcast, Disney, and Warner Bros. Discovery. They arrived with services like Disney Plus, HBO Max, and Peacock, putting Netflix under a lot of pressure to work harder to keep its current users and draw in new ones. We all know that the media industry is dealing with a lot of difficulties on its own due to recessionary concerns. Additionally, it has forced businesses like Warner Bros. Discovery to make layoffs.
Netflix predicted even more significant losses from the current period after reporting a decline in subscribers. The streaming juggernaut’s shares were trading at over $600 in January, but on Monday, June 20, they were hovering around $175. As a result, the platform is working with several other businesses to provide a less expensive, ad-supported subscription plan.