Popular video streaming company, Netflix, said it has laid off 300 people — which represents 3% of its workforce — because of slowing growth and the economic downturn.
This is the firm’s second layoff spree in two months, after it let go of 150 staffers in May. In April, it also laid off a bunch of staffers from its editorial arm Tudum, which launched just last December.
“Today, we sadly let go of around 300 employees,” Netflix said in a statement Thursday. “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,” a company spokesperson said in a statement.
The firm noted that while most of the laid-off employees were based out of the U.S., there have been cuts in the Asia Pacific, Latin America and Europe, the Middle East and Africa (EMEA) as well.
Netflix joins a long list of companies like Coinbase, Better.com and MasterClass that have let go of a significant chunk of their staff.
The company hit a growth roadblock this year, as it lost more than 200,000 subscribers in the first quarter. At that time, the firm said that it expects to lose 2 million global paid subscribers in the second quarter. The company cited the Russian invasion of Ukraine, the COVID pandemic and password sharing as some primary factors causing the slowdown.
Netflix stock, which was around $512 a year ago, is trading at $178.93 at the time of writing — a drop of almost 65%.
To bring the revenue and subscriber numbers up the company is working on numerous initiatives. It plans to livestream its unscripted shows like stand-up comedies. It’s doubling down on its gaming efforts by launching new titles too.
The company also plans to charge you more if people outside your household are using your account. It’s been already testing this feature in Chile, Costa Rica and Peru, but it’s not going well. The streaming service is also planning to add an ad-supported tier this year to reach a wider audience.