The layoffs have hit Netflix again, with the operator leaving nearly 300 employees on Thursday, diverse I learned exclusively.
The cuts were across multiple work positions at the company, with the bulk of jobs lost in the United States
These new layoffs, which diverse The first report will come out earlier this week, just a few weeks after the broadcasting giant — which has a global workforce of about 11,000 employees — made an initial round of similar-sized cuts in May. In that time, Netflix has laid off 150 employees and dozens of contractors and part-time workers. The tape indicated that more rounds of layoffs will come this year after that first group, as the company tries to adapt to its severely weak share price.
“Today unfortunately we have left about 300 employees,” a Netflix spokesperson said. diverse. “As we continue to invest heavily in the business, we have made these adjustments so that our costs grow in line with our slower revenue growth. We are very grateful for everything they have done for Netflix and are working hard to support them through this difficult transition.”
Netflix has lost nearly 70% of its value since it announced it had lost 200,000 subscribers at the end of the first quarter, and is expected to lose another 2 million in the second quarter. On Thursday, Netflix stock opened at $180.08 a share and was trading at $180.93 after 11 a.m. ET. Netflix shares traded north of $600 in January.
In its recent earnings, Netflix committed to cutting costs in order to keep its margins at 20%. The streaming device still plans to spend aggressively on content with a budget of $17 billion in 2022 for shows and movies. This is roughly in line with what was launched in 2021.
After years of easily winning the streaming wars, Netflix is finally starting to find success amid the onslaught of new and improved competitors, including Disney+, Comcast’s Peacock, Paramount Global’s Paramount+, and Warner Bros. HBO Max Discovery. With more new platforms for customers to choose from, and flashy, high-budget titles popping up on those services, increasing pressure has been put on Netflix to attract and retain subscribers as it loses valuable library content to companies that bring their content home for their banners.
Adding to Netflix’s struggle is the fact that the media sector, not to mention the rest of the US economy, is being pumped up by recession fears that has plunged the market into bearish territory. But Netflix isn’t the only company in Hollywood laying off workers amid the Wall Street chaos. Warner Bros. Discovery also cut key staff recently, as it looks to cut costs and debt burdens after the merger between WarnerMedia and Discovery that led to the creation of the new company was completed this spring.
Jazz Tangkai contributed to this report.