Netflix Facing Another Round of Layoffs: Report
Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.
Netflix could have another round of layoffs as early as this week, according to Variety.
The streaming giant, which has seen its stock price plummet more than 70% this year, already cut 150 positions across its organization in May. The upcoming layoffs could be similar in size, with impacted employees expected to be informed at the end of this week, Variety reported Monday.
Netflix shares have cratered since the streaming platform reported in April that it lost 200,000 subscribers during the first quarter—the first time that the company shed customers in more than a decade—and expects to shed another 2 million subscribers in the current second quarter. The streamer has blamed heightened competition, password sharing and Russia’s invasion of Ukraine, among other issues, for the loss in customers.
On Netflix’s first-quarter earnings call, CFO Spencer Neumann said that amid slowing revenue growth, the company will look to “protect our operating margins” over the next two years by “pulling back on some of our spend growth across both content and non-content spend.” Netflix began cutting costs a few weeks later, laying off about 25 people in its marketing division, including at its editorial website Tudum.
Although Netflix is navigating unique problems, it is far from the only tech firm that has slashed staff in recent weeks amid increasingly precarious economic conditions.
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Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.
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