The streaming giant is desperate to cut costs as it faces the fallout from declining subscribers and a huge loss in market value.
Netflix has laid off 300 more employees as it desperately seeks to cut costs, while launching an offensive within the ad industry to ramp up its ad-supported tier.
The American streaming company has been under siege since it revealed a drop in subscriber numbers, causing its share price and market value to plummet dramatically.
“Today we unfortunately laid off around 300 employees,” said a The Netflix spokesperson told Deadline.
“As 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. We are very grateful for all they have done for We and Netflix are working hard to support them through this difficult transition.
The layoffs were expected and had been reported earlier this week by Variety, but it was originally planned to be around 150 employees.
Netflix’s first round of layoffs took place in May, affecting around 150 employees and dozens of other contractors. Among those laid off last month were several roles within the company’s animation department as well as writers in Netflix’s Tudum editorial division.
The company has approximately 11,000 employees worldwide.
Netflix is trying to align costs after a disastrous financial report at the end of April.
He revealed a net drop of 200,000 subscribers in the first three months of this year, a result he attributed to increased competition in the industry and the loss of 700,000 members in Russia, where he had to suspend service following Vladimir Putin’s invasion of Ukraine.
The precipitous drop in subscriber numbers along with forecasts that it will cut an additional 2.5 million paid accounts in the current quarter have led to a steep drop in Netflix’s stock price.
Immediately after, its stock price lost a third of its value, which is equivalent to more than $50 billion. Netflix’s stock price is currently $170, down from $605 at the start of the year and its 12-month high of $700.
Netflix has removed several titles such as Steve Carell’s comedy space force and the superhero series produced by Michael B. Jordan Raising Dionas well as the cessation of production of shows in development, in particular that of Ava DuVernay wings of fire and that of Meghan Markle pearl.
The streamer also revealed that it will be rolling out two controversial updates to its platform, the first being an ad-supported subscription option that would allow users to pay lower fees in exchange for showing ads. .
Netflix co-founder Reed Hastings previously vehemently opposed an ad-supported tier, but admitted the option would give customers a choice.
Speaking at the Cannes Lions World Advertising Conferenceco-CEO and chief content officer Ted Sarandos said Netflix was talking to a number of potential partners to help launch the ad-supported tier.
He said the plan calls for a “fairly easy entry into the market, which we will build on and iterate on to make Netflix a destination for users. What we do first is not representative of what the end result will be.” product.
Sarandos also addressed the hammering Netflix has taken on the stock market: “We’ve been through experiences where the market disconnects from the core business and you have to prove that the thesis still works and it will work in the long run.
“There’s a lot of uncertainty in the world today, and if they get something that shakes the foundation of the narrative, they get nervous.
“We are in the early days of this evolution of viewing — the way people watch and consume television. Today, we represent about 10% of what people do on TV and about 30% of streaming.
“We look at that and say there’s still a long time that people are watching linear TV. You look at streaming growth as a percentage of the total, and there’s a lot of room to grow.
The other move Netflix is looking to take is a crackdown on password sharing, a practice that 100 million of its 222 million paying members have engaged in. It is currently testing a model in Costa Rica, Chile and Peru in which subscribers are asked to pay an additional fee to share their password beyond their household.
Netflix staff have also had a rough trot in their dealings with the company over recent controversial releases, including Dave Chappelle’s comedy special in which he made transphobic comments.
Netflix employees who objected to content on Chappelle’s program protested internally and physically outside the company’s Los Angeles headquarters after co-CEO and chief content officer Ted Sarandos handed out memos to defend the choice of the Chappelle platform.
A few weeks later, Netflix issued another missive to disgruntled staff, reiterating its support for “artistic expression” and encouraging employees who cannot commit to leave the company.
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