Connect with us

Hi, what are you looking for?

Editor’s Pick

Netflix cuts 300 more jobs after subscriptions fall

Netflix has announced another round of job cuts as it grapples with slowing growth and increased competition.

The streaming giant said it was cutting 300 more jobs – roughly 4% of its workforce – mostly in the US, after axing 150 people in May.

The moves come after the company reported its first subscriber loss in more than a decade in April.

The firm is exploring an ad-supported service and cracking down on password sharing as it tries to boost growth.

“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 on Thursday, adding that it was continuing to hire in other areas.

While Netflix has 220 million subscribers globally and remains the clear leader in the streaming market, it has faced fierce competition in recent years with the launch of rival platforms such as Disney Plus and Amazon’s Prime Video.

The company also recently embarked on a series of price increases in the US, UK and elsewhere, which have contributed to its subscriber losses.

The firm has said it expects its subscriber count to fall by another two million in the three months to July, after dropping by 200,000 earlier this year.

Surveys by Kantar research firm consistently identify saving money as the number one reason for cancelling streaming services – even in the US, where overall streaming subscriptions have held steady, unlike the UK.

On Thursday, Ted Sarandos, the company’s co-chief executive, told an audience at a conference in Cannes on Thursday that Netflix was in talks with many companies as it explores new advertising partnerships to appeal to price-sensitive audiences.

“We’re not adding ads to Netflix as you know it today. We’re adding an ad tier for folks who say ‘Hey, I want a lower price and I’ll watch ads’,” Mr Sarandos said at Cannes Lions.

The job cuts at Netflix come amid rising worries in the US that the labour market boom the country has enjoyed since the pandemic is coming to an end.

Signs of slowdown are particularly evident in the tech sector, where start-ups have cut nearly 27,000 workers since May – roughly double the number recorded in all of 2021, according to layoffs.fyi, which tracks publicly announced redundancies.

Firms in the housing sector have also announced hundreds of cuts in recent weeks.

The head of America’s central bank told members of Congress this week that its efforts to bring down rapidly rising prices by raising interest rates risk triggering a sustained economic slowdown, but were worth it to restore price stability.

“We’re not trying to provoke, and don’t think we will need to provoke a recession,” Federal Reserve chairman Jerome Powell said.

But he conceded in response to questioning, it’s “certainly a possibility”.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

News

[#item_full_content]

Editor’s Pick

[#item_full_content]

Editor’s Pick

[#item_full_content]

News

[#item_full_content]

You May Also Like

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Financial Advisors

The healthcare ecosystem is one that has thrived on the cusp of scientific progress, benefitting enormously from the winds of change in the technological...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.