About 300 Netflix employees were fired on Thursday, the streaming giant’s second round of layoffs this year.
In May, following the company’s 2022 first-quarter report, Netflix dropped about 150 full-time employees and more than 70 part-time, self-employed employees. Now, the company is downsizing its workforce on a similar scale, announcing more than 300 layoffs in various departments around the world, with the most successful American employees.
Following the initial layoffs, Netflix claimed the decision was “primarily driven by business needs and not individual performance.” Netflix plunged 26% in pre-market trading and lost 200,000 subscribers in the first quarter. However, following the subscribers ’report, Netflix received a class action lawsuit, and investors claimed that the company did not disclose the scale of the damages in the situation, alleging that they were provided “false and / or misleading” statements about business and finance. .
Related: What’s going on with Netflix? Everything you need to know about the massive collapse of the company
“While we continue to invest significantly in the business, we have made these adjustments so that our costs grow in line with our slower revenue growth,” a Netflix spokesman told NBC in a statement. “We are very grateful for everything they have done for Netflix and we are working hard to support them in this difficult transition.”
Since the announcement of the 200,000 lost subscribers, Netflix’s value has dropped nearly 70%.
To combat the dramatic loss of streaming giant subscribers (and with the expectation of losing an additional two million subscribers by the end of the year), Netflix has launched a series of initiatives to reduce costs and increase revenue. The company has begun testing a policy in Costa Rica, Peru and Chile that charges users for sharing passwords to mitigate part of the loss of a share of some 100 million combined household accounts worldwide. It also plans to launch a cheaper, ad-free subscription later this year.
Related: Netflix clears air amid massive layoffs: “We’re making changes to how we support our editorial efforts”