Video streaming giant Netflix (NFLX) says it is laying off 300 employees across the company as
its revenue growth continues to decline.
The cuts, which represent about 3% of its total workforce, come a month after Netflix
announced it was eliminating 150 positions in the wake of its first subscriber loss in a decade.
Netflix warned investors in April that it would be curtailing some of its spending growth over the
next two years as it adjusts to a slowing economic environment and increased competition from
Walt Disney (DIS) and Amazon (AMZN) Prime, among other competitors.
Netflix said during its last earnings call in April that it is trying to be “prudent” about spending to
reflect the realities of its business. However, it still plans to invest heavily, including around $17
billion U.S. on new content this year.
Chief executive officer (CEO) Reed Hastings also said during the earnings call that Netflix is
exploring lower-priced, advertising supported tiers in a bid to bring in new subscribers after
years of resisting advertisements on its streaming platform.
Netflix is also working to crackdown on rampant password sharing. In addition to its 222 million
paying households, more than 100 million households use its service through account sharing,
the company has said.
Netflix stock is down 70% this year to $181.71 U.S. per share.
