In another round of job cuts, Netflix had laid off around 300 employees.
This is the second time this year that the streaming platform cut jobs as it also laid off 150 employees in May, along with dozens of contractors and part-time workers. Worldwide, Netflix has around 11,000 employees.
A Netflix spokesperson said: "Today we sadly let go of around 300 employees. 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.
Netflix said that it is "grateful for everything they have done for Netflix and are working hard to support them through this difficult transition."
Netflix Attributes Layoff to Slow Revenue Growth
The latest layoffs were due to slowing revenue growth, following a steep decrease in Netflix's share price. Since the beginning of the year, its share price has fallen by around 70 percent.
Netflix's stock opened at $180.08 per share on Thursday. Just after 11 a.m. ET, it was trading at $180.93.
For the first time, the company's subscriber count dropped in the first quarter of 2022. It fell by 200,000 in large part. Netflix has lost 700,000 subscribers since it pulled out of Russia.
Netflix said in its latest earnings report that in the current quarter, it expects to lose as many as 2 million subscribers.
In addition to the cost cutting, the streaming platform is looking at more ways of generating revenue. Measure that Netflix is exploring includes ad-supported plans. It also wants to look at adding extra fees for those who share their accounts with people living in different households.
Netflix is hiring on other fronts. Despite the slow revenue growth, it still plans to invest heavily in content. For that purpose, this year, it has earmarked around $17 billion.
"News of the layoffs comes the week after Netflix announced a reality competition series based on its all-conquering drama, Squid Game," according to Engadget. The winner of the reality competition will take home $4.56 million.
Read Also: Netflix Chooses 'Artistic Expression' Over Woke Culture, Tells Employees to Either Buy In or Get Out
Stiff Competition in the Streaming Services Hits Netflix
Amid the onslaught of new and revamped competitors, Netflix has finally started to take a hit. This comes after years of easily winning the streaming services wars.
Among its competitors are Disney's Disney+, Comcast's Peacock, Paramount Global's Paramount+ and Warner Bros. Discovery's HBO Max.
With more new platforms for customers to choose from, it has been building pressure for Netflix to attract and retain subscribers. Splashy and high-budget titles available on those services add up to pressure it has been experiencing.
Netflix has been "losing valuable library content to companies bringing their content back home for their own streamers," according to Variety.
To make matters worse, the media sector, is being battered by recession fears that have plunged the market.
Amid the Wall Street chaos, Netflix is not the sole Hollywood company implementing layoffs.
Recently, Warner Bros. Discovery has also laid off key staffers, "as it looks to reduce costs and its debt load following the completion of the merger between WarnerMedia and Discovery that led to the new company's creation this spring," as reported by Variety.
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