Netflix is one of the staple streaming services that offers a wide variety of award-winning TV shows, movies, anime, documentaries in today’s world. The streaming behemoth, which has a global workforce of about 11,000 employees, made an initial wave of reductions of a comparable amount in May. It looks like Netflix began their second round of layoffs.
Approximately 300 employees at the streaming service were laid off on Thursday, Variety has exclusively revealed. The company is making cuts across a number of its business functions, with the majority of the positions lost in the United States. Variety first reported this week that additional layoffs will follow.
At that time, Netflix fired 150 full-time employees as well as numerous contractors and part-time staff. Following that initial round of layoffs, the streamer said other rounds would occur this year as the business works to recover from its sharply declining stock price. A Netflix spokesperson made a statement to Variety.
Today we sadly let go of around 300 employees. 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.
Since Netflix said it had lost 200,000 members at the end of Q1 and anticipated losing another 2 million in Q2, Netflix has lost about 70% of its value. Netflix’s shares traded at $180.93 soon after 11 a.m. ET on Thursday, up from the opening price of $180.08 per share. In January, Netflix stock was selling at about $600 per share.
Netflix stated in its most recent report that it would reduce expenses to maintain 20 percent profits. The streamer still has strong content spending plans, with a $17 billion budget for TV episodes and movies in 2022. That is approximately in line with the amount it spent in 2021.
In the midst of the turmoil on Wall Street, Netflix is not the only Hollywood company to implement layoffs. Following the completion of the merger between WarnerMedia and Discovery that resulted in the creation of the new firm this spring, Warner Bros. Discovery has also lately laid off important employees in an effort to decrease expenses and its debt load.
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