Netflix, the world’s most popular streaming service, has weathered a troubling year as it lost thousands of subscribers earlier this year.
Last week, Netflix trimmed its workforce again. This time 300 employees said goodbye to the streaming service company as part of an effort by management to keep costs down and improve efficiency in light of new competition from other major players among other factors.
The company laid off 150 employees after losing subscribers one month ago, but this time 4% of their workforce was let go.
The recent layoffs by Netflix have had a significant impact on their US employees. The company later released an official statement about the matter on Thursday.
“Today, we sadly let go of around 300 employees,” said the company. “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,” Netflix added.
Netflix is under pressure from an array of problems, including inflation in the price it charges for services and content. The company has also been struck by Russian invasion on Ukraine, inflation, and strong competition within the streaming industry.
The company initially projected 2.5 million more in the first quarter but instead registered net losses of 200,000 subscribers.
The loss leaves Netflix with a subscriber base of 221.6 million.
A loss of 2 million subscribers globally in the second quarter is predicted by Netflix, but their numbers will not be released until next month.
Netflix registered a steep fall in its share price after registering falls throughout the year. In January, the closing share price hit $508.25 before hitting $360-odd a week after the final quarter results of 2021.
Last week, Netflix’s second fall sparked more fear around the company’s sustainability and profitability.
Netflix has been exploring the idea of lower priced, ad-supported tiers, according to co-CEO Reed Hastings in the April earnings call. They are hoping to find a solution to bring in new subscribers.
It is unlikely that Netflix will roll out a cheap option for another year or two.
Netflix is working to stop password sharing. The company started testing different methods in Chile, Costa Rica, and Peru earlier this year as they continue their efforts around the world.