Netflix laid off another 300 employees.
The news comes Thursday after Deadline reported in May that layoffs are currently underway, with an initial 150 positions eliminated as the company’s revenue growth slowed.
“Today, we unfortunately laid off about 300 employees,” a Netflix spokesperson told Deadline. “While we continue to invest heavily in the business, we have made these adjustments so that our costs rise in proportion to slower revenue growth. We are so grateful for all they have done for Netflix and are working hard to support them through this difficult transition.”
We hear that the cuts are affecting a number of different teams, primarily in the US, but also including Asia Pacific, Europe, the Middle East, Africa and Latin America, including the company’s legal and product divisions.
Netflix has about 11,000 employees worldwide.
The latest layoffs come after Netflix lost 200,000 subscribers during the first quarter. In April, the company began laying off staff, laying off several employees at the Tudum fansite, and then reducing roles on US content teams.
In May, some of the layoffs were in leadership roles, including in original content, and several original director-level executives were due to leave, including Drama Series’ Sebastian Gibbs and Penelope Essoyan, Spectacle and Event TV’s Negin Salmasi. as well as Nathan Kitada, Fidan Manashirova and the Family Films team of Naketa Mattox, Brad Butler, Alison Haskovec and Caroline Mack.
Shares of Netflix fell sharply after the streamer reported a decline in its global subscriber base – the first drop in more than a decade. Wall Street also expected more from the streaming giant in terms of revenue, with analysts reaching a consensus of $7.93 billion. Netflix reported $7.868 billion in revenue in the first quarter, up less than 10% from a year ago.
Today, however, investors did not immediately react to the news. Shares of Netflix entered the second half of the trading day with a slight decrease. They have risen from their 52-week low but have lost more than two-thirds of their value in the past few months.
The company is about a month away from its next major intersection. He will report quarterly results at the end of July and has already reported a possible loss of 2 million subscribers. With subscriber growth slowing, the company’s cost-cutting efforts have come under closer scrutiny. Despite job cuts, content spending is expected to be around $20 billion this year, and no one is planning to cut that figure.
Streamer emphasized that despite the cuts, he needed a “back to basics” answer to the difficult events of the past few months. Global TV chief Bela Bajaria, speaking at the recent Banff World Media Festival, shrugged off the need for “radical changes to our business” given a difficult period of lower-than-expected sub-supplier growth that raised questions about the company’s model. .
Co-CEO Ted Sarandos addressed the drop in shares at the Cannes Lions event in France today, saying it’s inevitable in the development of a still relatively new industry.
“We have experience when the market disconnects from the core business and you need to prove that the thesis still works and will work in the long term,” he said. “There’s a lot of uncertainty in the world today, and if they get something that shakes the core of the story, they get nervous.”