Following the first subscriber decrease for more than ten years for the streaming juggernaut, Netflix Inc. reported that it has fired 300 people, or about 4% of its workforce, as part of the second round of process cuts intended to reduce costs. The change occurred after the company cut 150 jobs last month, and it primarily affected its U.S. team of employees.
While continuing to invest heavily in the company, Netflix said in a statement on Thursday that the price modifications were made so that they would keep pace with the slower growth in sales.
The main streaming provider in the globe has been put under pressure recently as tough competition, inflation, and the conflict in Ukraine weigh on subscriber growth. Netflix has predicted significantly greater losses for the cutting-edge period after the subscriber decline inside the first area.
The company intends to launch a low-cost, ad-supported membership tier for which it is in talks with multiple businesses in order to reverse that downward trend.
In an email, a Netflix representative said, “While we maintain to make significant investments within the business, we made those modifications to ensure that our prices are increasing in sync with our slower sales increase. They truly appreciate all they have done for Netflix and are working hard to support them through this difficult transition.
Following the disruption of its subscription-based sales model caused by the cancellation of 200,000 subscribers in the first quarter of 2022, Netflix is overhauling its operations. The issues have hurt staff morale and battered the company’s inventory charge.
As part of a trimming back of its advertising budget, Netflix also let go of a few settlement workers and editorial team members from its Tudum website in April in addition to the layoffs in May.
A fee increase in January may have contributed to Netflix’s subscription problems. Additionally, it faces increased competition from streaming services like Amazon.com Inc., Walt Disney Co., and Hulu, all of which have recently announced membership increases.
Co-CEO Ted Sarandos said on Thursday that Netflix Inc. is in discussions with a number of businesses about marketing and advertising partnerships as the streaming juggernaut tries to fix lagging subscriber growth by introducing a low-cost plan with adverts.
The company was reportedly in talks for capacity advertising tie-ups with NBCUniversal and Google, both of which are owned by Comcast Corp.
When asked which organisation Netflix was looking to partner with during the Cannes Lions convention, Sarandos responded, “We’re speaking to they all right now.