Netflix Loses Hundreds Of Employees Amid Financial Losses

REUTERS/Eric Gaillard

Kay Smythe News and Commentary Writer
Font Size:

Netflix announced Thursday that 300 employees would lose their jobs.

The streaming service announced its first losses in more than 10 years in April, losing 150 employees shortly thereafter in May. Roughly 4% of its workforce will now lose their jobs, largely due to the slow growth and a significant increase in competition from other streaming services, the BBC reported.

“Today we sadly let go of around 300 employees,” a Netflix spokesperson told Variety. “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 increased prices in the U.S. and the U.K., and is expecting to lose upwards of two million subscribers by July, the BBC continued. The company has already lost 200,000 subscribers earlier in the year, the outlet reported. (RELATED: Netflix Puts Its Woke Employees On Notice With Blunt Memo)

The company is exploring advertising partnerships to increase their appeal to price-sensitive subscribers, Netflix’s co-Chief Executive Ted Sarandos told an audience Thursday, the BBC noted. A majority of the company’s layoffs thus far are focused on contractors and part-time workers, Variety reported.