Netflix confirms another round of layoffs as it continues to grapple with slowing growth, cutting around 300 roles




Netflix sign in August 2020.
Netflix sign in August 2020.  
  • Netflix conducted more layoffs on Thursday as it continues to grapple with slowing growth.

  • The news follows Netflix previously cutting jobs in April and May.

  • The company lost 200,000 subscribers in Q1 and is expecting to lose another 2 million in Q2.

Netflix conducted more layoffs on Thursday, as it continues to grapple with slowing growth. 300 roles were cut, a Netflix spokesperson confirmed to Insider.

"Today we sadly let go of around 300 employees," the spokesperson said in a statement. "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. We are so grateful for everything they have done for Netflix and are working hard to support them through this difficult transition."

Variety, which first reported the layoffs, said that the layoffs were across multiple departments and the majority were in the US.

This isn't the first round of layoffs at the streaming company this year. In April, it laid off a dozen writers from its new editorial site Tudum, as well as 25 marketing staffers.

It then laid off around 150 "mostly US-based" full-time staffers in May due to "slowing revenue growth," a Netflix spokesperson said at the time. In addition, it also laid off 70 roles in its animation studio and at least 60 in the social-media division.

After a decade of rapid growth that saw it reach over 220 million global subscribers, Netflix reported in April that it lost 200,000 subscribers in Q1. It anticipates losing another 2 million in Q2, despite launching new seasons of hit shows like "Stranger Things" and "The Umbrella Academy."

Netflix partly blamed password sharing on the subscriber loss, saying that it estimates an additional 100 million households are using the service through a password shared with them, including 30 million in North America.

In March, the company started testing a new feature to monetize account sharing in Latin American regions. Users would be able to add up to two "extra member" accounts for a small additional fee, on top of their monthly subscription.

The company is pivoting in other ways as it seems to reevaluate its priorities.

It's set to introduce an ad-supported option, which it had pushed against until recently. And it is considering giving some movies - such as its "Knives Out" sequel - longer theatrical windows, closer to what the traditional studios do, for the few movies it does release to theaters, Bloomberg reported last month.

But the multiple rounds of layoffs this year are the surest sign that the company is suffering from economic strains and that the streaming boom of the pandemic is waning - at least for Netflix.

Rivals that entered the space in recent years - like Disney+, HBO Max, and Paramount+ - have seen impressive growth while eating into Netflix's market share.

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