Netflix fired 300 people on Thursday. This is the second consecutive month that the streaming giant has reduced staff as it faces an increase in subscriber numbers and a decline in stock prices.
“Today we sadly let go of about 300 employees,” the company said in a statement. “We continue to invest heavily in our business, but we have made these adjustments to increase costs as revenue growth slows.”
Netflix fired 150 workers last month, including staff working at Tudum, part of the company’s marketing department.
The company announced in April that it had lost 200,000 subscribers and said it expects to lose another 2 million in the second quarter of this year. In total, there are nearly 222 million subscribers. The company’s share price, which fell about 70% this year, fell slightly on Thursday.
Netflix has announced that it will introduce a low-cost subscription tier, including advertising, to address its financial difficulties. This decision is an important strategic point for the company, which has refused to adopt ads for years. Company executives say they hope to implement an advertising model by the end of this year, and Netflix is in talks with several companies that may help build their business.
Advertising-supported services can increase revenue, but some Wall Street analysts prey on Netflix’s existing user base in exchange for low-priced tiers for current subscribers. I warn you that there is a possibility.
Bank of America analysts said, “Ad stratification could help consumers of all income groups increase their streaming budget by trading down to subscribe to additional services, Netflix itself. You can get far more benefits than you can. ” Thursday investor.
