Netflix will lay off about 300 additional employees across all of its divisions, equivalent to about 3% of its total number of employees, about a month after it cut staff by about 150 jobs following its first loss in subscriber numbers in a decade.
As it continues to invest heavily in its business, Netflix is making these steps and adjustments to bring its rising costs in line with slow revenue growth, and the video streaming company warned investors in April that it would back down from some of its plans to inflate spending over the next two years. Read more [Netflix Shares Are Falling Due to The Loss of Subscribers].
CFO Spencer Newman said during the earnings conference call in April that Netflix is trying to be “wise” in backing away from its plans that reflect the reality of its current business, as he described it, but the company is still seeking massive investments, including about $17 billion on producing content.
Co-CEO Red Hastings also mentioned during the conference that Netflix is looking at low-cost, ad-supported content categories in an effort to attract new subscribers after years of banning ads on its platform. Netflix is also working to combat the widespread phenomenon of sharing account passwords, as in addition to the approximately 222 million households that subscribe to its services, there are more than 100 million homes that use the service through account sharing.
Netflix shares have been fairly stable during afternoon trading but are down 70% year-to-date. Read more [Netflix Stock Loses All The Gains Made During The Epidemic].