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Netflix lays off 300 workers amid subscriber losses

Ryan Faughnder, Los Angeles Times on

Published in Business News

Netflix on Thursday laid off 300 employees in the latest round of cuts as the company responds to a revenue slowdown and its first subscriber loss in more than a decade.

The Los Gatos, California-based streaming giant did not say what departments were affected by the cuts.

"Today we sadly let go of around 300 employees," a Netflix spokesman said in a statement. "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."

The company in May slashed 150 full-time positions across a variety of units shortly after reporting a loss of 200,000 subscribers in the most recent quarter. In addition, Netflix let go of dozens of contractors, some of whom worked on social media accounts to promote the company's diverse programming.

 

The streaming service expects to lose 2 million more subscribers this quarter, as Netflix faces a more competitive streaming environment. The rise of Disney+, HBO Max, Paramount+ and other streamers have increased pressure on Netflix to make more hit programming.

Netflix's stock has fallen 70% so far this year. The dramatic slowdown comes after Netflix subscriber numbers surged early during the COVID-19 pandemic, when people's out-of-home entertainment options were limited.

In addition to layoffs, Netflix has promised to gain more subscribers by offering a cheaper version with commercials and experimenting with ways to make more money from password sharing.

©2022 Los Angeles Times. Visit at latimes.com. Distributed by Tribune Content Agency, LLC.
 

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