Netflix slashes 300 more employees with 150 layoffs in May
Popular OTT platform Netflix is going through a difficult phase. The company’s concern has increased due to the ever-decreasing subscription. In such a situation, the company has announced layoffs. Netflix has announced a second round of layoffs. It is battling slow growth and increasing competition. The streaming giant said it is laying off more than 300 employees. This would be around 4 per cent of the total workforce. Most layoffs will happen in the US. Let us tell you that in the last month i.e. in May, the company had laid off 150 people. The company took the move in April after a drop in customers for the first time in more than a decade.
Netflix recently suffered the biggest loss of subscribers in the past decade. These layoffs are not based on personal performance, but on professional needs. The company is looking to ad-supported services to accelerate growth and crack down on password sharing.
“We will continue to make significant investments in the business,” Netflix said in a statement on Thursday. We made these adjustments so that our costs continue to grow in line with our slower revenue growth.
220 million subscribers
Netflix has 220 million subscribers globally and is a leader in the streaming market. It has faced competition in recent years with the launch of rival platforms such as Disney Plus and Amazon Prime Video.
The company recently began raising prices in the US, UK and elsewhere, which has led to a drop in its customer base. The company said it expects its customer base to drop by 2 million in the first three months of July. Let us tell you that Netflix lost about 2 lakh subscribers in the last quarter. This is the first time in the past decade that Netflix’s subscriber count has declined.
Netflix’s job cuts have come amid growing concerns in the US that the country’s labor market could rebound with the end of the pandemic.