Layoffs have hit Netflix again, with the streamer laying off roughly 300 employees on Thursday. Variety has learned exclusively.
The cuts are across multiple business functions of the company, with most of the jobs lost in the US.
These new layoffs, which Variety It was first reported earlier this week, hit just weeks after the streaming giant, which has a global workforce of about 11,000 employees, made an initial round of similar size reductions in May. At that time, Netflix laid off 150 employees and dozens of contractors and part-time workers. The streamer indicated more rounds of layoffs were to come this year after that first batch, as the company tries to adjust to its greatly weakened share price.
“Today we are sadly laying off around 300 employees,” a Netflix spokesperson said. Variety. “While we continue to invest significantly in the business, we have made these adjustments so that our costs grow in line with our slower revenue growth. We are so grateful for all they have done for Netflix and are working hard to support them during this difficult transition.”
Netflix has lost about 70% of its value since announcing that it had lost 200,000 subscribers at the end of the first quarter and expected to lose another 2 million subscribers in the second quarter. On Thursday, shares of Netflix opened at $180.08 per share and were trading at $180.93 just after 11 a.m. ET. Netflix shares were trading north of $600 in January.
In its most recent earnings, Netflix pledged to cut costs to keep its margins at 20%. The streamer still plans to spend aggressively on content with a budget of $17 billion in 2022 for shows and movies. That’s roughly in line with what he shelled out in 2021.
After years of easily winning the streaming wars, Netflix has finally started taking a hit amid the onslaught of new and revamped competitors, including Disney’s Disney+, Comcast’s Peacock, Paramount Global’s Paramount+ and Warner Bros. Discovery’s HBO Max. With more new platforms for customers to choose from, and flashy, high-budget titles appearing on those services, increased pressure has been placed on Netflix to attract and retain subscribers, as it has been losing valuable library content due to companies bring their content home for their own streamers.
Adding to Netflix’s struggle is the fact that the media sector, not to mention the rest of the US economy, is being hit by recession fears that have plunged the market into bearish territory. But Netflix isn’t the only Hollywood company to lay off amid the chaos on Wall Street. Warner Bros. Discovery has also cut key staff recently as it seeks to reduce costs and its debt load following the completion of the WarnerMedia-Discovery merger that led to the creation of the new company this spring.
Jazz Tangcay contributed to this report.