Netflix is ​​laying off another 300 employees

Netflix fired 300 people on Thursday, the second month in a row that the streaming giant is cutting staff as it faces declining subscriber growth and a falling share price.

“Today, we have unfortunately laid off about 300 employees,” the company said in a statement. “As we continue to invest in the business, we have made these adjustments so that our costs grow in line with our slow growth in revenue.”

Last month, Netflix fired 150 employees, including staff working at Tudum, which is part of the company’s marketing division.

In April, the company announced that it had lost 200,000 subscribers, saying it expected to lose another two million in the second quarter of this year. It has a total of almost 222 million subscribers. The company’s share price, which has fallen about 70 percent this year, was slightly lower on Thursday.

To address the company’s financial problems, Netflix has said it will introduce a lower-priced subscription package that includes ads. The decision is an important strategic game for the company, which had refused to accept advertisements for years. Managers at the company have said they hope to introduce the advertising model by the end of this year, and Netflix is ​​in talks with several companies that could help expand the company.

While the ad-supported service could increase revenue, some Wall Street analysts have warned that it could also cannibalize Netflix’s existing user base, with current subscribers trading at a lower price.

“Advertising could serve as a way for consumers across all revenue streams to extend their streaming budget by trading to subscribe to an additional service, which benefits Netflix’s competitors far more than Netflix itself,” Bank of America analysts wrote in a note to investors on Thursday.


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