Netflix is facing another round of job cuts as it further lays off 300 employees due to increased competition and a falling number of subscriptions. The online streaming giant released a statement this week stating that it is saddened to let go of more talent making it 4% of its workforce in the US after letting go 150 people in May.
Netflix started laying off employees after it witnessed its first subscription loss first time in more than ten years this April. The company is looking forward to adding an ad-based service model to its existing business structure and cracking down on password sharing as an effort to boost its growth.
The company officials stated in a statement on Thursday that it will continue to invest in the main business but they had to make these adjustments to cover the costs that are lining up due to slower revenue increase. The company also mentioned that it is hiring new people in other areas.
Netflix continues to have 220 million subscribers across the world and remains to be the clear market leader in online streaming services even while facing fierce competition from rivals like Amazon Prime Video and Disney Plus, which were launched in recent years.
The company also faced a price hike in the UK, US, and everywhere else which has further aggregated its rising costs. Netflix is further anticipating subscriber loss to fall by another two million by July. The company had just witnessed a 200,000 loss earlier this year. According to the research companies, Netflix’s try to save money is increasing the fall in its subscribers even in the US, where the company has most of its subscribers, unlike in the UK.
This Thursday, the Co-Chief Executive, Ten Sarandos told an audience at Cannes that Netflix is in talks with many companies a try to explore new advertisement partnerships to attempt to reach price-sensitive audiences. He further explained that,
“We’re not adding ads to Netflix as you know it today. We’re adding an ad tier for folks who say ‘Hey, I want a lower price and I’ll watch ads’,” Mr. Sarandos said at Cannes Lions.
He again hinted at the password-sharing crackdown. Feels like the viewers have had enough of Netflix and the fad is coming to an end. As the job cuts amid the US labor market crisis have led to more troubles for the streaming giant.
Tech startups look like having a tough time as they have cut nearly 27,000 workers since May which makes the number double the ones that were recorded in 2021. The layoffs are continuing to follow in the housing sector as well, cutting off hundreds of jobs in recent weeks. The head of the Central Bank of America told the Congress members that its efforts of bringing down the increasing prices by increasing the interest rates are triggering an economic downturn but they hope to restore the price stability.