Support for LAist comes from
Audience-funded nonprofit news
Stay Connected
Audience-funded nonprofit news
Listen

Share This

Arts and Entertainment

Netflix Lays Off 300 Employees As It Loses Subscribers

A Netflix logo on the side of a gray building, Los ANgeles highways seen to the right, with the city and L.A. hills in the background.
The Netflix logo is seen on top of their office building in Hollywood on Jan. 20, 2022.
(
Robyn Beck
/
AFP via Getty Images
)

With our free press under threat and federal funding for public media gone, your support matters more than ever. Help keep the LAist newsroom strong, become a monthly member or increase your support today. 

Entertainment streaming giant Netflix laid off an additional 300 of their 11,000 worldwide staff on Thursday, following the layoffs of 150 employees, dozens of contractors, and other part-time staff in May. The news was first reported by Variety, citing a statement from a Netflix spokesperson.

Earlier this year, Netflix officials said that they’d lost 200,000 subscribers at the end of the first quarter — the first time the company experienced such a decline in its recent history. They also disclosed that they expected to lose 2 million more subscribers in the second quarter.

The company’s stock has lost a significant amount of its value since these announcements. The stock opened Thursday at $180.50 and was down slightly as of midday. It peaked during this past year at just over $700.

More Competition

The layoffs come as Netflix faces increased competition for viewers’ dollars as competitors make big investments in their own streaming services. Some major players have emerged:

  • Disney+
  • HBO Max
  • Peacock
  • Paramount+

With increased competition has come higher rates of “churn,” with subscribers at least temporarily canceling some subscriptions while adding others. That means, Netflix has to worry about not just landing new subscribers, but keeping the existing ones.

Support for LAist comes from

Concerns from observers are also growing that streaming subscriptions may have peaked. The big question is whether streamers will be able to recapture revenue once generated via other distribution channels, such as advertising, international sales, and theatrical distribution.

And, like other businesses, they also face the growing fears of a possible recession.

The majority of the Neflix layoffs affect U.S. staff. Netflix cited “slower revenue growth” as the reason for the layoffs, looking to keep their costs in line with that adjusted speed.

The company committed in their most recent earnings call to cost-cutting that would keep their profit margins at 20%. They’re not the only streamer making cuts — HBO Max parent company Warner Bros. Discovery, following the acquisition of WarnerMedia, has also made a number of cuts. However, those have been focused on the executive ranks thus far.

We have reached out to Netflix and will update this story if we receive a response.

Support for LAist comes from

At LAist, we believe in journalism without censorship and the right of a free press to speak truth to those in power. Our hard-hitting watchdog reporting on local government, climate, and the ongoing housing and homelessness crisis is trustworthy, independent and freely accessible to everyone thanks to the support of readers like you.

But the game has changed: Congress voted to eliminate funding for public media across the country. Here at LAist that means a loss of $1.7 million in our budget every year. We want to assure you that despite growing threats to free press and free speech, LAist will remain a voice you know and trust. Speaking frankly, the amount of reader support we receive will help determine how strong of a newsroom we are going forward to cover the important news in our community.

We’re asking you to stand up for independent reporting that will not be silenced. With more individuals like you supporting this public service, we can continue to provide essential coverage for Southern Californians that you can’t find anywhere else. Become a monthly member today to help sustain this mission.

Thank you for your generous support and belief in the value of independent news.

Chip in now to fund your local journalism
A row of graphics payment types: Visa, MasterCard, Apple Pay and PayPal, and  below a lock with Secure Payment text to the right
(
LAist
)

Trending on LAist