'difficult transition'
Netflix lays off another 300 employees in wake of subscriber losses
Over two months after Netflix's shock subscriber loss, the streamer's woes continue.
Netflix confirmed Thursday it has laid off another 300 employees, or about three percent of the company. "While we continue to invest significantly in the business, we made these adjustments so that our costs are growing in line with our slower revenue growth," Netflix said in a statement. "We are so grateful for everything they have done for Netflix and are working hard to support them through this difficult transition."
Netflix previously laid off about 150 workers in May, again citing slowing revenue growth. In April, the company confirmed it lost 200,000 subscribers in the first quarter of the year, a big miss in expectations and the first time that Netflix has lost subscribers in over 10 years. Netflix cited a variety of factors, including heavy competition from rival streamers like Disney+, as well as password sharing.
Netflix has since announced plans to crack down on password sharing and launch a new cheaper subscription tier supported by ads. The ad-supported tier will reportedly launch as soon as this year, but a price point hasn't been revealed.
According to The Hollywood Reporter, Netflix is also looking to make bigger and better movies but also release fewer of them, and there's been talk that the streamer could give some of its movies major theatrical runs to gain an additional revenue stream. In April, though, Netflix forecast it would lose another two million subscribers during the second quarter of the year.