Weeks after Netflix laid off roughly 150 of its employees, the streaming giant on Thursday cut an additional 300 staffers from its workforce as it weathers ongoing financial troubles, slowing growth and a market now flooded with major competition.
The layoffs, amounting to about three percent of the company’s global workforce, affected multiple departments but the bulk of the cut staffers were based in the U.S. About 216 workers were impacted in the U.S. and Canada; 30 staffers were cut in Asia-Pacific countries; 53 positions were axed in Europe, the Middle East, and Africa; and 17 were cut in Latin America, according to a memo sent to staff on Thursday and obtained by The Hollywood Reporter.
“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. “We are so grateful for everything they have done for Netflix and are working hard to support them through this difficult transition.”
This round of layoffs continues the company’s bloodletting from May when Netflix laid off 150 employees, as well as dozens of contractors and part-time staffers after the company’s Q1 report and projections showed slowing revenue growth. Many of the staffers let go had maintained the company’s social media and publishing channels—including those for series dedicated to underrepresented communities. This included cuts from Strong Black Lead (for Black stories and creators) Con Todo (all things Latin), Most ( LGBTQ+), and Netflix Golden (Asian diaspora), according to THR.
The staff cuts in May came shortly after a prior round of layoffs of several contractors and full-time staffers who had been working for Tudum—Netflix’s “official companion site” that was run by the company’s marketing division. Those staffers and contractors were let go just five months after the site was launched.
The streamer has lost nearly 70 percent of its value since it announced in April that it had shed around 200,000 subscribers in the first quarter of 2022 and expects to lose another two million by the end of Q3. On Thursday, Netflix’s stock opened at $180.08 per share and was trading at $180.93 at 11 a.m. ET— a massive slide from the roughly $600 per share seen in January.
In its most recent earnings report, Netflix committed to cutting costs to keep a 20 percent margin. The streamer still plans to spend aggressively on content, though, with a reported 2022 budget of $17 billion for TV series and films.
After years as the leading streaming platform, Netflix took a hit when an onslaught of competitors entered the scene, including Warner Bros. Discovery’s HBO Max, Disney’s Disney+, Comcast’s Peacock, and Paramount Global’s Paramount+. The competition has made it difficult for Netflix to attract and retain subscribers. The company also made the decision in March to suspend service to Russia’s 700,000 subscribers over the invasion of Ukraine.
But Netflix isn’t the only Hollywood company that has had to reduce its workforce. Following a $43 billion merger in April, Warner Bros. Discovery also sacked key employees and shut down CNN+, its very short-lived streaming platform.
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