Kris Holt

Netflix lays off another 300 employees Engadget

Netflix laid off about 300 people in its latest round of layoffs. Most of the layoffs were reportedly in the United States Diversityand a number of departments were affected.

“Unfortunately, we fired about 300 employees today,” a Netflix spokesman told the publication. “Although 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 everything they have done for Netflix and we are working hard to support them through this difficult transition. ”

This is Netflix’s second round of layoffs due to slowing revenue growth. Back in May, it laid off 150 employees, as well as many part-time workers and contractors. The company has about 11,000 employees worldwide.

Netflix also fired about 10 employees from its marketing department and internal news site Tudum in April. These special layoffs were due to the reorganization of Netflick’s marketing team. It was said that these are normal business decisions and that they are not directly related to cost reduction.

The latest layoffs followed a sharp drop in the price of Netflix shares, which fell by about 70 percent since the beginning of the year. In the first quarter of 2022, the number of the company’s subscribers dropped for the first time. It fell by 200,000, in large part because Netflix withdrew from Russia and lost 700,000 subscribers there. In its latest earnings report, Netflix said it expects to lose as many as 2 million subscribers this quarter as well.

In addition to reducing costs, Netflix is ​​looking for more ways to generate revenue. This includes ad-supported plans and additional fees for those who share their accounts with people living in other households.

The company employs on other fronts and still plans to invest heavily in content. This year, it set aside about 17 billion dollars for that purpose. The news of the layoffs comes a week after Netflix announced a competition series in reality based on its all-encompassing drama, Squid Game. The winner will take home $ 4.56 million.

Update 23.6. 4:30 PM ET: Clarification of some details on the dismissals in April.

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