Netflix has laid off 300 employees, according to an announcement from the streaming giant on Thursday. This is the second round of job cuts after the platform lost 200,000 subscribers globally, a decline for the first time in more than a decade. Netflix had also laid off some contract workers and editorial staff from its Tudum site in April to balance its marketing budget after the loss of subscribers.
These layoffs have predominantly affected the workforce in the US.
Increased competition, the economy, the war in Ukraine, and account sharing beyond the home were some of the reasons given by the company for the decline in subscribers. After losing subscribers for the first time in a decade and projecting a decline of 2 million in the coming quarter, Netflix said in April that it was taking a serious look at advertising.
Now, on Thursday, Netflix co-CEO Ted Sarandos said the streaming platform is in talks with several companies for ad partnerships, as the streaming titan looks to counter slowing subscriber growth by rolling out a plan more cheap with ads
“We are not adding ads to Netflix as you know it today. We’re adding a level of ads for people who say ‘hey, I want a lower price and I’ll see the ads,'” Sarandos told Cannes Lions.
Media reports from earlier this week said it was in talks with Alphabet Inc’s Google and Comcast Corp’s NBCUniversal for potential marketing partnerships. Netflix’s most formidable competitor, Walt Disney Co’s Disney+, had also said it would introduce an ad-supported tier as the pandemic’s boom in streaming fades, competition stiffens and rising inflation drives down spending. entertainment consumers.