is laying off about 300 employees globally in its latest round of cuts, as the streaming service tries to control costs.
The move follows a previous round of layoffs in May that affected 150 employees. It comes as Netflix is reining in some of its content spending and looking to drum up new revenue with the planned launch of an ad-supported tier of its service.
“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,” a Netflix spokeswoman said Thursday. “We are so grateful for everything they have done for Netflix and are working hard to support them through this difficult transition.”
Variety earlier Thursday reported Netflix’s new round of layoffs.
Netflix in April reported its first quarterly loss of subscribers in more than a decade and said it expected to lose 2 million global subscribers in the current quarter. Netflix shares are down about 70% since the start of the year.
This round of layoffs primarily affected employees in the U.S. across a number of roles, though they also extended globally, a person familiar with the matter said. About 76% of Netflix employees were in the U.S. and Canada at the end of last year.
The fresh round of layoffs represent about 3% of Netflix’s employee base. The company doesn’t expect another major bout of personnel cuts for now, the person familiar with the matter said, though teams internally may restructure their operations or not fill empty positions when staff leave.
Laid-off employees are eligible for severance packages that start with four months of pay and increase based on factors like seniority, the person said.
Netflix said in an April regulatory filing that personnel costs had contributed to a rise in general, marketing, and technology and development expenses in the first quarter of the year. It had increased its head count as part of efforts to improve its service, expand internally and increase production activity,
The company is scheduled to report second-quarter earnings July 19.
said earlier Thursday that Netflix is in talks with multiple potential partners to help it create an advertising-supported tier of service, a move that would bring in a fresh line of revenue beyond subscription fees. Mr. Sarandos said the company may start by partnering with an established advertising company but would eventually build its own internal tools.
NBCUniversal are the front-runners to partner with Netflix on that effort, The Wall Street Journal reported Wednesday.
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Appeared in the June 24, 2022, print edition as ‘Netflix Lays Off About 3% of Workers.’