Get Woke Go Broke: Netflix Fires Hundreds More Staff as Subscriptions Plummet
300 employees laid off as streaming platform struggles amid major losses
"Woke" TV and movie streaming platform Netflix has just fired hundreds more employees as the company suffers huge losses amid plummeting subscriber numbers.
On Thursday, Netflix announced it is laying off another 300 employees after losing hundreds of thousands more subscriptions.
Most of those losing their jobs will be in the U.S. and from multiple different departments within the company, according to a report from Variety.
“Today we sadly let go of around 300 employees,” a Netflix spokesperson reportedly told the outlet.
“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.”
This is the second mass layoff at the company in as many months, Variety notes.
Netflix, which has roughly 11,000 staffers worldwide, laid off 150 employees and dozens of part-time and contract workers in May.
The cuts at the streaming giant come following dismal reports showing Netflix lost 200,000 subscribers in the first quarter of 2022 and is expecting 2 million more to end their subscriptions in the second quarter.
The major subscription losses dealt a blow to the company’s stock, which lost roughly 70% of its value.
In response to the subscription losses, Netflix reportedly looked to fast-track ad-supported content, according to a May report in The New York Times.
“Executives said they were aiming to introduce an ad-supported, lower-priced subscription tier in the last three months of the year, quicker than originally indicated,” the Times wrote.
Many of the company’s competitors offer cheaper streaming options that earn revenue through ads.
Netflix co-CEO Reed Hastings told investors that Netflix would be introducing a similar offering “over the next year or two,” but now an internal memo appears to indicate that the change could happen by the end of this year instead.
The surprising internal revelation came after Netflix had promised subscribers for years it would never run ads on the platform.
However, more competition from streaming services such as Disney, Paramount, Peacock, and others has seemingly caused Netflix executives to reevaluate their strategy.
“With more new platforms for customers to choose from, and splashy and high-budget titles popping up on those services, increased pressure has been put on Netflix to attract and retain subscribers as it’s been losing valuable library content to companies bringing their content back home for their own streamers,” Variety added.