The streaming behemoth has been struggling with a slowdown in revenue growth, and Netflix is cutting about 300 additional jobs, or about 3% of its workforce.
A Netflix spokesman told FOX Business that they made adjustments so that their costs are 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. According to a memo obtained by the Hollywood Reporter, the layoffs affect about 216 employees in the U.S. and Canada, 30 employees in the Asia-Pacific region, 53 employees in Europe, the Middle East and Africa region and 17 employees in Latin America.
The second round of layoffs comes after about 150 employees of Netflix were let go in April. The changes were primarily driven by business needs and not individual performance, according to the company at the time. Netflix had approximately 11,000 employees at the end of 2021, according to the end of 2021.
The decline was due to factors including account sharing among more than 100 million households competition with other streaming services, sluggish economic growth, inflation, Russia's invasion of Ukraine and continued disruption from the COVID 19 epidemic, according to the company.
Spencer Neumann, Netflix's chief financial officer, told analysts and investors in April that the company was committed to cutting costs over the next two years to maintain margins of roughly 20%. The company plans to invest around $17 billion in television shows and films in the year 2022.
It is expected to introduce a cheaper, ad-free subscription tier that could roll out by the end of the year.
As of the time of publication, the company's shares have fallen nearly 70% year to date.