Netflix lays off 300 employees in second round of job cuts | Netflix

Netflix announced Thursday that it has laid off 300 employees in a second round of job cuts after it lost subscribers for the first time in more than a decade.

The cuts amounted to about 4% of the streaming giant’s workforce and mostly affected US employees. They came after the company cut 150 jobs last month.

“While we continue to invest significantly in the business, we have made these adjustments so that our costs grow in line with our slower revenue growth,” Netflix said in a statement.

Netflix said in February that it had lost 200,000 subscribers worldwide by the beginning of 2022 and expected a 2 million user decline for the next quarter.

The company attributes the decline to a number of factors, including increased competition, the economy, the war in Ukraine and the large number of people sharing their bills with non-paying households.

Last month’s layoffs also mainly impacted the company’s US workforce. Lawyers and former employees said at the time that the cuts affected many employees from underrepresented groups, and that the company also appeared to be pulling back on some of the diverse content it had funded in the years since George Floyd’s death.

Ted Sarandos, chief content officer and co-CEO at Netflix, at the Cannes Lions summit on Thursday. Photo: Eric Gaillard/Reuters

“Almost everyone I see on LinkedIn posting about layoffs worked for diversity, equality and inclusion across the company,” former Netflix employee Evette Dionne tweeted at the time† “These aren’t the only people getting fired, but they make up too many of the 150 to be coincidence.”

The company denies those reports.

A Netflix spokesperson said its various audience-oriented channels such as Con Todo and Strong Black Lead are a priority for the company and that they are “investing heavily” in them.

“We are committed to recording on screen, behind the camera and in our staff,” he said. “We are making changes to the way we support our publishing efforts, including bringing some of this important work in-house.”

To make up for the loss of subscribers, Netflix is ​​also considering adding ads to the service in exchange for a cheaper subscription, in addition to cutting costs, a move it had long resisted.

Netflix CEO Ted Sarandos said on Thursday that the company is in talks with several companies for ad partnerships.

Media reports from earlier this week said it was in talks with Alphabet’s Google and Comcast’s NBCUniversal about potential marketing deals.

“We’re talking to all of them now,” Sarandos said at the Cannes Lions conference when asked which company Netflix wanted to partner with.

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