Netflix has laid-off 300 employees

Netflix announced on Thursday that they have laid off 300 more employees during the round two of job cuts. Moreover, they cited loss in subscribers for the first time in more than a decade as the reason for the job cuts.

Round two of job cuts

In May, the company laid off 150 employees and many contractors during the first round of job cuts. However, the current job cuts will affect 4% of Netflix’s total workforce. “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,” Netflix said in their official statement.

Huge decline in Netflix’s subscribers

The streaming giant Netflix has lost 200,000 subscribers globally at the beginning of this year. In addition, the company is also projecting a loss of about 2 million subscribers during the upcoming three quarter. This has severely dented their business. However, the company has blamed increasing competition, economy, Ukraine war and sharing accounts with non-paying household as the reason for the loss.

The lay-offs will most impact workers in the United States. Moreover, it will also affect various different teams in the international arena as well. “Today we sadly let go of around 300 employees. 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.” Netflix spokesperson Bao Nguyen said in a statement.

Strategy to get back on track

However, Netflix is determined to get back on track after the enormous setback. Hence, they are introducing new policies, including an ad-supported service and a crackdown on password sharing. In addition, the streaming giant is collaborating with many companies to explore new advertisement partnerships. The purpose of these partnerships is to appeal their target audience to subscribe for Netflix. “We’re not adding ads to Netflix as you know it today. We’re adding an ad tier for folks who say ‘Hey, I want a lower price, and I’ll watch ads.” Netflix co-chief executive Ted Sarandos commented on the company’s revamping strategy.

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