Netflix cut 300 jobs on Thursday as its troubles continue. The cuts follow 150 layoffs in May after the streamer said it lost 200,000 subscribers.
Variety, which was the first outlet to report on the latest round of layoffs, said most of the cuts are in the U.S. across multiple divisions.
“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 in a statement Thursday. “We are so grateful for everything they have done for Netflix and are working hard to support them through this difficult transition.”
The new layoffs affect about 3 percent of the company’s 11,000 fulltime employees.
In an April earnings call, Netflix execs said the streaming giant lost subscribers for the first time in more than a decade. The news that 200,000 customers had abandoned their subscriptions in the first quarter of the year caused Netflix’s stock to tumble. The stock has now lost 70 percent of its value since January, according to published reports.
While it still has more than 200 million paying customers worldwide, including 74 million in the United States and Canada, Netflix brass admit they expect to lose another 2 million subscribers in the coming months.
Analysts say people are dumping Netflix for several reasons — the company keeps raising subscription fees; it has a history of canceling popular shows like The Order, The OA, GLOW and The Society. There is too much poor quality content on the platform and it’s facing intense competition from other streaming services, including Amazon Prime, Hulu, Disney+, HBO Max, Peacock, Paramount+, and AppleTV+.
Netflix launched in1997 and is headquartered in Los Gatos, California.