Netflix Cutting 300 Employees in Second Wave of Layoffs
Netflix is cutting 300 employees in a second wave of layoffs. Variety reports that the cuts come across different sections of the company. Most of the workers affected reside in the United States as well. It's been a strange year for the streamer as they've had to battle against internal expectations and outside user frustration. Earlier this year, Netflix laid off 150 employees and some contractors after the comapny's growth was revealed to have leveled a bit. Stock prices have slid because of users leaving the service for a variety of reason. Co-chiefs Ted Sarandos and Reed Hastings sent out a memo to the staff about the decision and tried to calm the waters a bit. But, this represents another hurdle for Netflix to overcome as it moves into the back half of 2022.
"Today we sadly let go of around 300 employees," a Netflix spokesperson wrote to Variety. "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. We are so grateful for everything they have done for Netflix and are working hard to support them through this difficult transition."
The note to the staffers from Hastings and Sarandos read, "Both Ted and I regret not seeing our slowing revenue growth earlier so we could have ensured a more gradual readjustment of the business."
"We know these two rounds of layoffs have been very hard for everyone — creating a lot of anxiety and uncertainty," they continued. "We plan to return to a more normal course of business going forward. And as we cut back in some areas, we also continue to invest significant amounts in our content and people: over the next 18 months, our employee base is planned to grow by ~1.5K to ~11.5K."
Back in May, the company explained, "As we explained [in reporting Q1] earnings, our slowing revenue growth means we are also having to slow our cost growth as a company," a statement said. "So sadly, we are letting around 150 employees go today, mostly U.S.-based. These changes are primarily driven by business needs rather than individual performance, which makes them especially tough as none of us want to say goodbye to such great colleagues. We're working hard to support them through this very difficult transition."
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