Everyone’s first favorite streaming platform is cutting down on staff in the face of a sinking stock price and weaker subscription rates.
California-based Netflix is laying off 300 employees in the face of what seems to be an impending national recession, according to media reports. Variety first reported that the layoffs affect multiple departments, and that most of the cuts would be in the United States.
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The latest news comes about a month after Netflix cut around 150 employees along with dozens of contractors and part-time employees after the company reported it was down by 200,000 subscribers at the end of the first quarter — its first loss in 10 years — and expected to lose a whopping 2 million more subscriptions this quarter.
“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 spokesperson told Variety.
Netflix’s global workforce is estimated to be 11,000 people. The company is based in Los Gatos, Calif., and leases dozens of soundstages, animation studios and major office sites throughout the Greater Los Angeles region, including in top entertainment hubs such as Hollywood and Burbank.
Netflix’s stock has fallen 70 percent since the start of the year. It closed at $181.71 per share today after starting the year at $415.66. In October 2021, the value topped out at $690 per share.
After dominating the streaming wars for years, Netflix is now facing fierce competition from growing platforms like Disney+, Amazon (AMZN) Prime and HBO Max.
It’s a much different story than a couple years ago. When the pandemic hit in 2020, Netflix was already thriving. Then mass lockdowns led to a historic surge in subscriptions when entertainment options around the world were limited like never before.
Netflix still leads the subscriber race today with 222 million signed up for its service. Disney+ is in second with just under 138 million subscribers. Netflix also plans to spend $17 billion in 2022 for shows and films.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
