As subscriber depreciation fades, Netflix leaves another 300 people working

As subscriber depreciation fades, Netflix leaves another 300 people working ...

Netflix has informed 300 employees that they cannot work on Thursday. The Thursday headcount decrease comes accompanied by 150 employees who were let go last month. These rounds of layoffs come after the streamer earlier this year claimed it lost 200,000 paying subscribers and plans to shed another 2 million subs in the current quarter.

Multiple employees were surveyed on Thursday because they had a shortage of jobs; the majority of them live in the United States.

According to IndieWire, today we sadly let go of around 300 employees. These are the reasons why we made these adjustments so that our costs are rising in line with our slower revenue growth. We are so grateful for everything Netflix has done for us and are working hard to support them throughout this difficult transition.

The May layoffs impacted largely U.S.-based employees, including some in the executive ranks working on original content. All of this, 150 employees were dismissed, along with dozens of contractors and part-timers. Netflix''s workforce is around 11,000.

After the May cuts, we are letting around 150 employees go today, mostly from the United States. These changes are primarily driven by business needs rather than individual performance, which makes them particularly difficult as none of us wants to say goodbye to such great colleagues. Were working hard to support them through this very difficult transition.

As part of a restructuring of the company''s marketing efforts, Netflix was also forced to leave at least ten full-time employees on April 28.

The stock of Netflix (NFLX) has dropped by about half since it announced the Q1 subscriber decline for the first time in a decade. On July 19, Netflix will air its Q2 performance.

Netflix''s stock opened at $180.50 on Thursday, with a total of 75 percent higher in October.

The company has pledged to reduce costs in order to keep margins at 20 percent, owing to the job cuts. However, Netflix is on track to spend $17 billion this year, roughly the same amount as last year. By contrast, Disney is on track to spend $32 billion on content this year across its streaming, linear, and theatrical properties, up $8 billion from last fiscal year.

Both Netflix and Disney are adopting ad-supported tiers on their popular streaming services. MoffettNathanson estimated that Netflix would generate $1.2 billion in advertising revenue in the United States by 2025, equateing to just 4 percent of the company''s worldwide revenue last year; Disney+ might generate $1.8 billion that year.

Despite the subscriber falling, Netflix remains the most popular streaming service with 221.64 million subscribers worldwide. Disney+ has 137.7 million subscribers.