The American streaming giant is not doing well. After already laying off 150 people in May 2022, Netflix comes to announce the dismissal of 300 additional employees.
300 additional layoffs
Most of these new layoffs took place in the United States, and several departments of the company were affected. A Netflix spokesperson took the floor to explain that “our company has to let go of 300 employees. As we continue to invest significantly in the business, we have made these adjustments so that our costs increase in line with our slower revenue growth. We’re so grateful for everything they’ve done for Netflix and we’ll work hard to support them through this difficult transition.”.
The media still lacking in confidence in France and around the world
This is Netflix’s second round of layoffs due to slowing revenue growth. The company laid off 150 employees last May, along with many part-time workers and contractors. It’s simple, Netflix is going through the worst crisis in its history. The company had grown exponentially during the Covid-19 pandemic. However, between January and March 2022, the platform lost 200,000 subscribers, a first for more than a decade. A sign that says a lot about the health of the American giant.
The Worst Crisis in Netflix History
Netflix explains this situation by the loss of its Russian subscribers, fierce competition as well as the illegal sharing of accounts. In fact, the company also reports of a gigantic debt and a business model that is struggling to prove itself. Unsurprisingly, this situation sent Netflix’s stock price plummeting. The company has lost around 70% of its stock market value since the start of the year. In its latest report, the company said it expected to lose up to 2 million subscribers in the current quarter.
It would be a real disaster for the American giant. Besides cost cutting and layoffs, Netflix is looking for other ways to generate revenue. The company could offer packages with advertising and additional fees for those who share their account with people living in other households. In parallel, the company is hiring on other fronts and still plans to invest heavily in content. It has planned to spend about $17 billion for this purpose this year.