In Second Round Of Job Cuts, Netflix Lays Off Hundreds Of Employees

OTT platform Netflix has announced another round of job cuts. The online streaming platform, which was grappling with slowing growth and increased competition, laid off 300 employees, about 4 per cent of its workforce, in the second round of job cuts, news agency Reuters reported on Friday.

The report mentioned that the fresh round of job cuts was aimed at lowering costs after the streaming giant lost subscribers for the first time in more than a decade.

The move mostly affected its US workforce as the company last month fired 150 employees.

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

“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 a statement on Thursday.

The world’s dominant streaming service has come under pressure in recent months as inflation, the war in Ukraine, and fierce competition weigh on subscriber growth. After the subscriber drop in the first quarter, Netflix has forecast even deeper losses for the current period.

To arrest that downtrend, the company plans to introduce a cheaper, ad-supported subscription tier for which it is in talks with several companies.

According to news report, Netflix has decided to rejig its operations after the exit 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.